Why do lenders ask about large deposits?
Large deposits must be documented to confirm they come from acceptable sources. Freddie Mac requires lenders to verify that funds are not borrowed or from undisclosed accounts, helping prevent fraud and ensuring financial transparency.
Related FAQs
- Why is title insurance required?
- What is a preliminary title commitment?
- What is a gift letter?
- Why do lenders need proof of homeowners insurance before closing?
- What is a closing disclosure?
- Why do lenders verify identity documents?
- What is a title report?
- Why do lenders need tax returns?
- What is a letter of explanation?
- What is a Verification of Employment (VOE)?
- Why do lenders need bank statements?
- What documentation is required for a Freddie Mac loan?
- Can lenders use electronic signatures?
- Are digital income verification tools acceptable?