What are Statements for Payouts?
If you are refinancing your mortgage to pay out several debts such as credit cards, car loans, etc., you may be required to provide a recent (within the past week or two) statement for each debt to be paid out that shows the following information:
- Your outstanding balance
- The account number
- Your name
But I’ve already submitted these to my broker or lender, why are you asking for them again?
Without question, it is frustrating to be asked for the same documents again and again.
As a rule of thumb, your lawyer will try to use documents your broker and lender has shared with us. However, there may be a lag of weeks and even months from the time you apply for your new mortgage until closing time.
Some statements may be out-of-date and show an incorrect balance as they may have been used or paid down as of late. A statement within the past week or two provides a more accurate amount that is to be paid out to your creditor and will avoid additional interest and future hassles in paying off your debts.
What’s the best way to get these statements?
Most of your statements can be accessed online by logging into your creditor’s website. Some website provide the option to download a statement, while some may require you to take a screen capture.
When you are saving or screen capturing your statements, please ensure your name, account number, and outstanding balances are clearly visible. Otherwise, you may be asked to resubmit the statement.
Why does the statement need to show the account number and my name specifically?
Your lawyer is undertaking payment to your creditors and need to ensure we have the correct account numbers and are paying the correct party. This is to avoid situations where payment is made to the wrong accounts or made fraudulently.
Can’t you just do this for me?
Unfortunately, privacy rules and regulations prevent lawyers from speaking to creditors on your behalf. At Deeded, we understand that the process of obtaining statements is tedious and time-consuming and are working on various solutions to solve for it in the future.1