What Assets Should You Provide on a Mortgage Application
When applying for a mortgage there are a few factors a lender will assess in determining your credit worthiness. They will need to know your employment history, income, your credit and how much money you have otherwise known as net worth.
Lenders utilize automated underwriting systems (AUSs) from the GSEs who provide the money – Fannie Mae and Freddie Mac. These systems have algorithms which consider the aforementioned factors. One of the overlooked factors is providing a clear and complete picture of how much money you have. Certainly, on a purchase mortgage the lender is requiring enough assets to meet the down payment and closing costs for the home. Additionally, it is also looking for reserves so in case something happens down the road, the borrower can still make the payments in the case of losing a job.
Assets which can be provided include bank accounts, money market accounts, investment accounts, CDs, IRA accounts and 401K accounts. In other words, any assets whether liquid or semi liquid should be provided as it helps improve the probability of approval.
These assets are provided by providing either 1-2 months statements or the most recent quarterly statement.
Providing assets really does improve the strength of your loan file. Make sure you fully understand and talk to your trusted mortgage professional at Hall Financial to learn more.