What Are Verified Assets For Home Loan?

Verified Assets For Home Loan

Gustan Cho Associates

If you are applying for a mortgage loan, mortgage lenders will need to see verified assets for home loan. Verified Assets For Home Loan are checking accounts, savings accounts, IRA, 401K, Keoughs, and investment accounts.  All assets needs to be sourced and verified in order for it to count.  Mortgage lenders will require that the mortgage loan borrower has verified assets for home loan for the down payment and closing costs of their home purchase prior to a clear to close .  All mortgage loan programs have strict guidelines when it comes to verfied assets for home loan programs.

Copies of Cashier’s Checks Or Canceled Checks On Earnest Money

Never pay earnest money with cash because cash does not count in the mortgage industry. Pay it with a bank check or cashier’s check and make a copy of the check and/or cashier’s check because that will be verified assets and you need to provide that to your mortgage lender.  Also, 60 days of bank statements will be required by your mortgage lender and the funds of the earnest money leaving your bank account will need to be verified.  Your earnest money will be counted towards your down payment on your home purchase as long as it is verified.

Checking And Savings Accounts Are Verified Assets For Home Loan

Two months of bank statements will be required by your mortgage lender and every larger or irregular deposits will be reviewed and sourcing will be required to be counted as verified assets.  All pages of the bank statements and/or bank print outs will be required even if it is a blank page.  Reason for this is because bank statements have page of 1 of 7, page 2 of 7, page 3 of 7, page 4 of 7, page 5 of 7, page 6 of 7, page 7 of 7 and if one of those pages are blank, mortgage lenders will need to account of all pages.

Irregular And Large Deposits

All large and irregular deposits needs to be sourced in order to be counted.  For example, if you get regular paycheck deposits direct deposited to your checking account, a mortgage underwriter will see that and it will state that the paycheck deposit is from your employer.  That is considered sourced deposits.  However, if you get a $5,000 deposit that is irregular, mortgage underwriters will want to see where that came from.  If it has no paper trail and it is a cash deposit from a gift from a relative, then it cannot be counted as verified assets for home loan.  If you can document the $5,000 deposit such as from a sale of a car, you need to show the copy of the check, copy of bill of sale, copy of title, and deposit slip.  Then this is considered verified assets for home loan the the $5,000 can be used as sourced funds and can be counted for your down payment.

IRAs, 401k, And Keogh Accounts Are Verified Assets For Home Loan

IRA, 401k, and Keogh Accounts are all verified assets for home loan purposes.  60% of the account value on IRA, Keogh, and 401k accounts can be used as verified assets for home loan.  The other 40% can be used for reserves if the mortgage underwriter requires reserves.  Reserves cannot be gifted and needs to be actual funds of the mortgage loan borrower.  3 to 4 unit properties require 3 months reserves of principal, interest, taxes, and insurance, also referred to as PITI.  Copies of the retirement plan is required, especially the withdrawal agreements.  If you are borrowing from your IRA, 401k, or Keogh Accounts, the monthly payments to repay those accounts will not be counted towards the calculation of your debt to income ratios since it is viewed that you are borrowing against yourself.

Gift Funds Can Be Used As Verified Assets for Home Loan

Gift funds from a relative can be used as verified assets for home loan for down payment and closing costs purposes only.  Gift Funds cannot be used for reserves or to pay off existing consumer debts.

Real Estate Agent As Home Buyers

If you are a real estate agent and are purchasing a home, you can use your real estate commissions towards your down payment as verified assets for home loan.

Related> Cash to Close

Related> Unsourced fund in mortgage approval process

Related> Funds in bank statements

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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