Documenting your assets helps prove the worthiness of your credit. Some common assets considered during the mortgage loan application are: stocks, bonds, mutual funds, life insurance, personal property, alimony, child support, other real estate, 401K and other retirement accounts. Additional assets that are documented show a lender a history of saving money, which proves that a borrower is more dependable. It is always important to verify how the borrower funded the down payment. One reason being, some loan programs have strict guidelines regarding where the funding is coming from. In today.s market it is almost common practice to verify all assets in order to protect lenders against fraud. This documentation is also used as an underwriting tool to determine a borrower.s qualifications. The biggest reason a lender wants to see all documentation of assets is to prove the stability and strength of the borrower.

Again, it is always a good idea to be prepared months in advance. Have all documentation on file before buying a home. Today, many loan programs that require full documentation need as much financial background on a borrower as possible to fulfill loan guidelines. Documenting assets gives a good indicator whether or not the borrower pays their bills on time. In this business, every step of qualifying for a home loan depends on the financial stability of the borrower.