To prepare bank transactions for mortgage processing, ensure consistency, accuracy, and compliance with lender requirements. Verify account ownership, confirm transaction dates align with pay stubs and tax returns, and resolve discrepancies like overdrafts or unexplained deposits. Organize documentation chronologically, including bank statements, canceled checks, and proof of deposits. Use a standard format for submission, such as PDFs with clear labels.

Mortgage lenders prioritize transactional integrity to mitigate fraud risks and ensure compliance with regulations like the Truth in Lending Act (TILA) and Home Affordable Modification Program (HAMP). Inconsistent or incomplete documentation can lead to loan rejections or delays. According to the Mortgage Bankers Association (MBA), 15% of mortgage applications were denied in 2023 due to insufficient documentation, costing borrowers an average of $4,200 in reapplication fees. Additionally, the Federal Housing Finance Agency (FHFA) reported that 30% of loan processing delays in 2022 stemmed from unresolved transactional discrepancies, prolonging closing timelines by 15–20 days. Structured preparation reduces errors, accelerates underwriting, and aligns with automated underwriting systems like Fannie Mae’s Desktop Underwriting, which requires precise transactional data for instant approvals. Lenders also mandate 90–120 days of transaction history, so organizing statements and deposits within this window is critical.