HOME REAL ESTATE GLOSSARY BUY LOAN APPLICATION PAST WORK CONTACT US FAQ   Verifying Your Down Payment, Closing Costs, Assets, Income and Debts Application Checklist Use my Application Checklist to gather the documentation requested by most lenders. 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 / 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 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. Search the MLS Here! Apply for a Loan Today! Contact us to Buy, Sell and Finance a Home! Portions Copyright © 2021 Pipeline ROI, LLC Another website by Pipeline ROI Terms of Use Site Map This website uses cookies to ensure you get the best experience on our website Got it