To prepare bank transaction records for a home purchase, gather all bank statements, canceled checks, deposit slips, and account summaries spanning at least 60 days before the mortgage application. Organize documents chronologically, ensuring clarity on income, savings, and debt payments. Highlight transactions showing consistent savings or stable employment. Reconcile accounts to verify balances match official records. Lenders require these records to assess your financial health and determine loan eligibility.

This process ensures compliance with mortgage underwriting standards set by entities like Fannie Mae and Freddie Mac, which mandate documentation to minimize risk. A 2021 study by the Consumer Financial Protection Bureau (CFPB) found that 35% of mortgage applications face delays due to incomplete or inconsistent financial records, underscoring the need for meticulous preparation. Properly organized records reduce scrutiny on assets and liabilities, increasing approval chances. For example, the Federal Housing Administration (FHA) requires a clear paper trail for down payments, often traced through bank statements. Data from the National Association of Realtors (NAR) reveals that buyers with well-prepared documentation close transactions 20% faster than those without. Ultimately, structured records build trust with lenders, align with regulatory requirements, and demonstrate financial responsibility, directly influencing loan terms and approval rates.