3 Things Lenders Don’t Want to See on Your Bank Statements

1. Non-Sufficient Fund (NSF) charges

When you bounce a check or try to buy something without enough money in your account, it will show up on your bank statement as non-sufficient funds (NSF) or overdraft charges. These are a red flag to lenders, automatically they have the impression that you are not responsible with your finances.


2. Large Deposits

If lenders see large, undocumented deposits, they instinctively become suspicious of your credibility. It gives the lender the impression that your down payment or reserves may be coming from a shady source. If you cannot prove that your large deposit is from an acceptable source, lenders will not factor it in to your overall credit reserves.


3. Regular Payments to Individuals

Lenders want to be able to account for all your transactions in order to judge your creditworthiness. If there are regular, automatic payments to individuals rather than to businesses or banks, lenders will flag them as undisclosed credit accounts. If you have an undocumented loan from your parents or a friend, it is crucial that you specify those on your application. Generally, it is better to avoid those type of loans/payments altogether.