Positive Real Estate Professionals

When you are applying for a home loan you always want to put your best foot forward as the saying goes. One way to do that is to disclose during the application process your assets. The ability to show that you understand fiscal responsibility by being able to save money in checking, saving, 401k, or other type of depository account is important.

Once you disclose assets on the loan application, the lender will use a Verification of Deposit (VOD) form to verify the accuracy of those assets. The verification of deposit has three distinct parts which must be completed by the lender, the borrower, and the depository institution. The lender will complete sections 1 through 8. These sections are very straightforward and include the depository institutions name and address and the name and address of the lender. Other important information in the lender’s section is the specifics of the asset information to be verified including account type, owner of record of the account, the account number, and the balance. Section 9 is the only thing the borrower needs needs to complete; and that is the signature of the borrower which authorizes the depository institution to provide the requested information. The lender then transmits the form directly to the depository institution with no intermediary. Section 10 through 18 is completed without interference from either the lender or the borrower by the depository institution. Once completed the verification of deposit is then returned directly to the lender.

This is a very simple form for the verification of deposits as declared by the borrower. The use of this form is a step in the process of properly qualifying a borrower. This form is not always used as bank statements, 401k statements, and other depository institution statements are sometimes acceptable. In some instances depository institutions will also accept a Borrower’s Certification and Authorization (BA) in lieu of a borrower’s signature on this form.