One of the things lenders are concerned with is the source of funds for your down payment and closing costs. Most likely, you will be asked to provide statements for the last two or three months on any of your liquid assets. This includes checking and savings accounts, money market and mutual funds, certificates of deposit, stock statements, and even your company 401k and retirement accounts.

If you have been moving money between accounts during that time, there may be large deposits and withdrawals in some of them. The lender will probably require documentation for all your withdrawals and deposits. This may include canceled checks, deposit receipts, and other seemingly inconsequential data, which could get quite tedious.

Perhaps you have become frustrated with your lender, they are only asking for what is needed. To eliminate potential fraud and ensure quality control, it is required on most loans that the source of all funds be completely documented. Moving your money around, even if you are consolidating your funds to make it “easier,” could prove more difficult for the lender. So leave your money where it is until you talk to a loan officer.