Documenting your assets:

verifying down payments, assets, income and debts

Down Payment(s) & Closing Costs    

Documenting that the down payment comes from your savings and that you will have savings and/or assets apart from the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan.

Take extra care to document the sources for any monies to be used for the down payment or closing costs.

Acceptable down payment & closing costs sources

•        Cash in a bank account    
     
•        Mutual funds / stocks / IRA / 401k      
   
•        Proceeds from the sale of another property      
   
•        Gift from an immediate relative

 Assets

Collect information about your personal assets that add to your net worth and help to prove your credit worthiness.

 Common assets considered in a Mortgage Loan Application

• Stocks, bonds, mutual funds, 401k and retirement accounts

• Life insurance        

• Personal property estimate - cars, boats, antiques, jewelry, etc.        

• Other real estate or property

Income and Employment

The lender will want to confirm your current gross income and have evidence of stable employment. Documentation requirements vary depending upon a number of factors, including the source of income.

Income sources can include:

• hourly wages
  
  
• salary wages
  
  
• salary + bonuses
  
  
• salary + commissions
  
  
• commissions
  
  
• freelance work
  
  
• self-employment

Debts

Your lender will want to review a list of all your current debts. This along with your credit report will provide the lender with a snapshot of your obligations. The lender will want to confirm that you will not be overextended when the mortgage payment is added to your current debt load.

 Here's a list of things you do NOT want to do if you are getting ready to apply for a mortgage or borrow money for your real estate purchase.