When applying for a home loan, business loan, and other loans, your assets and bank information are typically required. While a bank statement is usually sufficient, mortgage lenders often require transaction statements due to the transaction being on a tight timeframe.
Bank statements tend to only come out once a month so when recent transactions need to be verified, a bank Transaction Statement will typically do the trick!
Perhaps you are at that stage in your home loan processing, or you would like to have the necessary information before beginning your mortgage process. This article is a complete guide that provides you with all of the information you need to obtain a bank transaction statement regardless of who you bank with.
A bank transaction statement is a document containing recent transactions or history in your account. You can pull a transaction statement for normal bank accounts like checking/savings as well as non-liquid accounts like IRAs, 401ks, etc.
It typically will show similar data to that of an official Bank Statement, except that it'll be non-official meaning it can withhold sensitive information like Social Security numbers, full account numbers, etc.
You can obtain a free IRS transaction statement at any time with nearly any bank using one of the following methods:
This is the simplest and quickest way to obtain your bank transaction statement. In addition, it allows you to avoid any unnecessary trips to the bank.
1. Login to your online banking portal specific to your bank.
2. Select the correct bank account in which the transaction statement is needed.
3. Adjust the date range to the specified timeline that's needed. For example: The date of your last bank statement until today's date.
5. Ensure that Headers and Footers are enabled (SUPER IMPORTANT)
6. Select "Print to PDF" or "Save to PDF" when selecting your printer.
7. Click "Save" or "Print".
After successfully downloading your transaction statement, you'll be able to send that PDF over to your lender and voila! All done!
If you're unable to login to your online banking portal or the previous method doesn't work for you, you'll need to go into a local branch for help.
1. Locate the nearest retail and either setup an appointment and stop in to talk to a bank teller.
2. Explain that you need a transaction statement dated from xx/xx/xxxx until xx/xx/xxxx.
3. They will either download it for you from your online banking account (in which you'll want to ensure that headers and footers are enabled) or they will print out a hard copy for you right there.
5. Scan and send all pages of the statement over to your lender.
This method definitely takes a little longer but is typically the failsafe option to ensure you get your necessary documents over to your lender to close on time.
You can also get a bank transaction statement mailed or faxed to you by calling your bank.
1. Call your bank's customer service line and explain that you need a transaction statement dated from xx/xx/xxxx until xx/xx/xxxx.
2. You can either request that they mail it to you or for quicker turnaround, fax directly to your lender.
3. Ensure that it's post marked if mailed or given an official seal if faxed to ensure the lender can confirm that it's a legitamate document.
As part of the loan application process, mortgage lenders require that there be no gaps in between asset statements. For example: If you submitted a bank statement that was dated January 1st to January 31st and then you paid your earnest money for your home purchase on February 7th, there would be a gap in assets if you provided the receipt of earnest money. To combat this, mortgage lenders would require you to obtain a bank transaction statement dated January 31st (which was the date of the last statement) up until February 7th (or whenever the withdrawal/deposit in question happened).
Thus, giving a perfect asset history without any gaps.
The following are the major reasons why your lender requires assets without any gaps:
To confirm your asset history.
To ensure that the funds in your accounts are in fact your funds and not transferred in from an external account.
To prevent fraudulent activities.
To determine if any money laundering is occurring.
In addition, a bank transaction statement would allow a lender to increase the verified assets on your loan application if payday occurred just after a bank statement cycle.
Bank transaction statements are essential pieces of documentation in your mortgage process. Your lender will require them to evaluate your asset history and payment ability to verify the information contained in your loan application. Once you present your transaction statement to your lender, you are one step closer to getting your final mortgage approval.