When you make an earnest money deposit (EMD), the money leaves your bank account and becomes part of the funds being used to purchase the home.

Before closing, the lender must verify that you still have enough money available for your down payment, closing costs, reserves (if required), and any other funds needed to complete the transaction.

The bank statements you originally provided may show your account balance before the earnest money deposit cleared. Once the EMD has been cashed or deposited, the lender often needs updated documentation showing the transaction leaving your account and confirming your remaining available funds.

Depending on timing, this documentation may be:

• An updated monthly bank statement
• A transaction history from your bank
• An online banking printout showing the cleared transaction
• Other account documentation requested by underwriting

This is a very common request and usually does not indicate a problem with your loan. The lender is simply documenting the source of the earnest money deposit and verifying that sufficient funds remain available to close.

As a general rule, whenever possible, avoid moving money between accounts or making unusual deposits during the mortgage process unless you’ve discussed it with your loan officer first. Clear documentation helps keep your loan moving smoothly toward closing.