Mortgage lenders are required to document where a borrower’s funds are being sourced from during the loan underwriting process. Two common requests that surface often are (1.) bank statements and (2.) transaction histories. Each document serves a different purpose and is needed at various stages during the loan process.
What Is a Bank Statement?
A bank statement is an official document issued by a bank or credit union that lists all finalized activity for its statement cycle and is generated each month. A bank statement typically includes:
- Account holder’s name and account number
- Beginning and ending balance
- Cleared deposits and withdrawals
- Fees and interest
- Bank’s standard format with identifying account information
- Can be easily downloaded in PDF format from the bank’s online portal
What Is a Transaction History?
A transaction history is an up-to-date record pulled from online or mobile banking. Unlike a monthly bank statement, it shows the most current transactions. A transaction history typically includes:
- Deposits or withdrawals made after the last statement
- Pending transactions
Why Both Are Needed
Bank statements and transaction histories work together to show complete account activity:
- Bank statements offer verified documentation for a specific period
- Transaction histories show recent activity that has not yet appeared on an official statement
The Bottom Line
Staying cautious, verifying information, and working with licensed professionals are essential to protecting personal finances during the mortgage process. For questions or trusted guidance, contact Bluefire Mortgage Group at (760) 930-0569 to speak with one of our Mortgage Loan Originators.
