# Keep the Statements Clean: What to Tell a Self-Employed Borrower About Their Bank Accounts During the Loan By Brandon Sooknanan, Founder of StatementReady You collected 12 or 24 months of statements, the file is clean and it's on its way to the lender. Then the borrower moves money around, opens a new account or bounces a payment, and the lender asks for an updated statement. Now there's something new to explain. Most of that is avoidable with one short conversation at application. This guide covers what to tell a self-employed borrower about their accounts while a bank statement loan is in process, and why each point matters. *This is educational, not underwriting or legal advice. Lenders set their own guidelines; confirm with the lender. Requirements vary by lender and program.* ## Why the accounts still matter after you submit On a bank statement loan, the statements are the income documentation. A lender may ask for a more recent statement before closing, and anything on that statement can raise a question: a large deposit, a transfer from an account you haven't seen, an overdraft. The borrower usually doesn't know that ordinary money moves can look different to an underwriter. Tell them early. ## What to tell the borrower ### 1. Keep business deposits going where they've been going If customer payments have landed in the same account for the whole look-back period, keep it that way until closing. Redirecting deposits to a new account mid-loan means the next statement won't look like the ones you submitted, and you may need statements from a second account. ### 2. Don't open or close accounts without calling first A new account, a closed account or a switch to a new bank can each lead to a request for more statements or a letter of explanation. If the borrower has a real reason to change something, talk it through first so you can plan the paperwork. ### 3. Call before any large or unusual deposit A gift, a sale of equipment, a loan, a transfer from a relative or a one-time payment can all draw a question. The [StatementReady FAQ](https://statementready.net/faq) describes the usual answer: "Usually with a letter of explanation (a short written statement from the borrower) plus documents showing where the money came from, such as the statement of the account it was transferred from. What the lender wants depends on the program." It's much easier to collect that paper trail when the money moves than weeks later. See [how to source a large deposit](https://statementready.net/guides/how-to-source-large-deposits). ### 4. Keep transfers between accounts traceable Moving money between the borrower's own accounts is normal. The problem is when the other side of the transfer is an account the lender hasn't seen. Ask the borrower to move money only between accounts already in the file where they can, and to tell you about any others. Lenders commonly leave transfers between the borrower's own accounts out of income, and that works best when both sides can be matched. See [excluding transfers and refunds](https://statementready.net/guides/excluding-transfers-refunds-bank-statement-income). ### 5. Avoid overdrafts and returned payments From the FAQ: "Underwriters may treat NSFs and overdrafts as part of the overall credit picture and may ask for an explanation, especially if they are recent or repeated." Suggest the borrower keep a cushion in the operating account until closing. ### 6. Keep paying yourself the usual way If the borrower normally pays themselves from the business account on a regular pattern, there's usually no reason to change it now. A sudden large owner draw or an unusual payment out of the business account can prompt a question about the business's cash. ### 7. Send complete statements when asked If the lender asks for an updated month, ask for the full statement, every page, not a screenshot or a transaction list. Many lenders accept statements downloaded from online banking, and some have rules about transaction histories or scans. ## A short script you can use "While your loan is in process, please keep your deposits going to the same accounts, and call me before you open or close an account, make a large deposit or move money from an account we haven't talked about. The lender may ask for an updated statement before closing, and anything unusual on it may need a written explanation." ## Where StatementReady fits When the lender asks for a newer month within 60 days of the first upload, you can add it to the same loan file without using another credit. From [Pricing](https://statementready.net/pricing): > "All statements for the same application within 60 days of the first upload for that file are included, and re-running or editing the file does not use another credit." From the FAQ: > "Create a borrower upload link on the loan file. It works for that one loan file only, needs no borrower login, expires within 7 days (you choose 1–7), and you can revoke it anytime." > "Every statement is checked to the cent: opening balance plus credits minus debits must equal the closing balance. It also checks that each closing balance matches the next opening balance and flags missing months. Statements that don't reconcile, or can't be checked, are marked Unverified, and exports carry that warning. You review flags and can edit rows." From Pricing: > "Reconciled means the transactions add up to the printed balances. It doesn't confirm that each deposit is eligible income. StatementReady assists your review and doesn't make underwriting decisions." From the FAQ: > "No. It doesn't make a credit decision. You review the flags, and you and your lender stay responsible for checking the results against program guidelines." **Get started**: [statementready.net](https://statementready.net). First 2 loan files free, no card required. [Pricing](https://statementready.net/pricing) ## FAQ **When should I have this conversation with the borrower?** At application, before the statements go to the lender. It's easier to prevent a new question than to explain one. **Can a borrower open a new business account during the loan?** It's their account, but a new account can lead to more statements or a letter of explanation. Ask them to call you first. Lenders set their own guidelines; confirm with the lender. **Will the lender ask for a newer statement?** Some do before closing. Requirements vary by lender and program. **Does StatementReady tell me whether a new deposit counts as income?** No. It flags items for your review. You and your lender decide. ## Sources (checked 2026-10-24) *Product statements are quoted from the live pages on the date checked.* 1. StatementReady FAQ: https://statementready.net/faq 2. StatementReady Pricing: https://statementready.net/pricing ## Related guides - [Large deposits on bank statement income](https://statementready.net/guides/large-deposits-bank-statement-income) - [Letters of explanation for bank statement loans](https://statementready.net/guides/letter-of-explanation-bank-statement-loans) - [How many NSFs are allowed for a mortgage](https://statementready.net/guides/how-many-nsf-allowed-for-mortgage) - [Excluding transfers, refunds and other non-income deposits](https://statementready.net/guides/excluding-transfers-refunds-bank-statement-income) For shorter answers, see the [StatementReady FAQ](https://statementready.net/faq). --- © Varaxon Technologies LLC d/b/a StatementReady. Lender and program names are trademarks of their owners. StatementReady isn't affiliated with any lender named here. [Privacy Policy](https://statementready.net/privacy) · [Terms](https://statementready.net/terms) This blog is hosted by Hashnode. [Hashnode's privacy policy](https://hashnode.com/privacy) applies to this site.