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. While some lenders may just skim over these, we realize that anything less is doing you a disservice.

Down Payment & Closing Costs

Documenting that the down payment comes from an acceptable source and that you will have liquid financial reserves above the down payment always helps us get you the best loan possible. Take extra care to document the sources for any monies to be used for the down payment or closing costs. Usually funds to to be in your possession for at leats 60 days, unless they are from a gift.

Acceptable Down Payment & Closing Costs Sources

• Cash in a bank account
• Mutual funds / stocks / IRA / 401(K)
• 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, 401(K) and retirement accounts

• Life insurance

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

• Other real estate or property

Income and Employment

We will need to verify your income, so we ask for a current paystub, for pre-approval, so that we can figure your income the way an underwriter will. For the loan, 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

We will go over your debts with you, from your credit report as well as any other pertinent debts such as, child support or garnishments. We may request your current statements, so we have all the information needed to verify accounts or obtain any payoffs needed, without bothering you every other day for it.