If you have a joint bank account with another person, and that person is not going to be on a mortgage loan application with you, you will need something called a full access letter from the other person.
This would verify to the underwriter that you have access to use that money for settlement, if needed.
I have seen the need for a full access letter in the following scenarios:
- A bank account is a joint account between a husband and wife, and the husband may not be on the loan because he has bad credit, and the husband would need to write a “full access letter” ensuring that the wife has access to the funds in that joint account if needed. Of course common sense says this would be the case, but Fannie Mae requires this full access letter nonetheless.
- A bank account is a joint account between a son and a mother, which was possibly opened when the son was much younger and he needed to have someone else on the account because of his young age. But in the future as an older adult, he’d need a full access letter from his mother, since her name is on the account as well, so the underwriter (and more importantly Fannie Mae) can document that the son has her permission to access the funds if needed.
The full access letter can be short and simple, and say the following:
“To whom it may concern, (mortgage borrower’s name) has full access to use all the monies in the (name of the bank/financial institution) bank account/s with the following account number/s (account number/s). The account/s is/are joint accounts between my (husband, wife) and I. These monies can be used, all or in part, for the purchase of the property at (subject property address).”