Knowing what your Assets are in regard to purchasing a home is often confusing and yet it is something that you will need to know in order to apply for and be approved for a mortgage through a lender. Assets can be a long list of things ranging heavily all the way from a family heirloom and even a vehicle. When it comes to purchasing a home, try to think of your assets as any cash that you have, that could be investments as well as savings accounts. Here are a few of the most commonly used examples of assets to include in your loan application:
This category allows for anything that is immediate cash. If it can be cashed out, or withdrawn then it would count as a cash asset, think of things such as Savings Accounts, Checking Accounts, CD’s, etc.
Anything that is a physical object you own that is of high cash value would be considered one of your physical assets, this includes things such as cars, boats, RV’s, jewelry, etc.
Not all of your assets will be physical objects or cash stored in a bank account, nonphysical assets include things such as your 401k account, stocks you hold, royalties, IRA’s, pensions etc.
While these are the three of the main categories that are generally included on a mortgage application, there are other assets that you may qualify to list. Your assets always have to be things that you personally own or co-own, and you must provide proof of ownership if asked. Everything that you provide on your loan application will be used to determine your qualifications, so it is vital that you ensure all of your assets are listed.
In conclusion, it is always important to know what your assets are and manage them efficiently, however, when it comes to applying for a home loan, you want to ensure that you have all of your assets listed within your application to help increase your approval odds. If you have any further questions regarding your assets you can always ask your financial advisor and they will be able to assist you and answer any questions that you may have in regard to your personal assets you hold.
Related: Opening Escrow, What Does it Mean?
If you are currently searching for a new home, are in need of a seller’s agent to help you list and market your property, or if you have any questions regarding Camano Island Real Estate, please feel free to contact our office at any time
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