Verifying Your Down Payment,
Closing Costs, Assets, Income and Debts
A critical step in the mortgage loan application process
is to verify the sources for your down payment, closing costs
and assets, as well as documenting income and debts. The lender
uses this step to determine your qualifications as a borrower.
Down Payment & Closing Costs
Documenting that the down payment comes from your savings
and that you will have savings and/or assets over and above
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 (hourly, salary, salary + bonuses, salary + commission,
commission, self-employed, etc.).
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.
F.A.Q
We offer a wide range of services including real estate sales,
financing, and property management. Call us today for a free
consultation @ 916-482-6899 or email us at fay@amerpropmgmt.com.
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