In a majority of cases, the moneylender would call your bank for verification of your bank account and statements. It would be pertinent to mention here that most lenders would fill the verification of deposit (VOD) request forms. The form would be sent to your bank for verification of your bank account. Most banks would offer downloadable forms for moneylenders on the bank websites.
What kind of verification is verified?
The moneylender submitting the VOD form to the bank would receive confirmation of the account number of the potential borrower. Regardless, the account has been open or closed, the information would cater the moneylender with the precise date when the account was opened or closed. The information would also verify the kind of bank account inclusive of savings, money market or checking. The moneylender would confirm about the account balance on the date of request. The moneylender would also request confirmation on the average balance over two to three months along with the balance at the time of closing the account, if case be. The banks would send the VOD forms confirming the moneylender through email or fax.
Perspective of the moneylender
The moneylender would be given the discretion for requesting your bank statements or seeking VOD from the bank. A majority of lenders would avail both the options. Lenders would make use of both the VODs and bank statements for determining the mortgage eligibility. It would be done for their satisfaction along with requisites of some government-insured loans. In these loans, the source of down payments should be made aware to seek mortgage approval.
Most consumers would wonder whether they should ask their moneylenders about verifying the deposits instead of reviewing the bank statements. It would hide their drawbacks such as overdraft. Moneylenders usually reviewing the bank statements would miss the overdrafts. However, the consumer having several overdrafts would be considered risky.