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Asset Statements: Why Are Mortgage Lenders Interested in Them?

The Better Rate Mortgage team can tailor your mortgage to your specific needs. Our experts are also ready to answer any mortgage questions you may have. Call (314) 361-9979.

Applying for a loan can often feel like an invasion of your privacy. Every aspect of your job, income, tax returns, and more are analyzed. An asset statement is another required item! This is something that almost every mortgage lender will ask for. But why? Why are asset statements so important?

Why Do Lenders Ask To See Your Asset Statement?

Most lenders will require you to back your application with your asset statements. This may include your investment, retirements, savings, or checking accounts. It may feel invasive, but it’s for your own good. See, your asset statement will help your lender determine your creditworthiness. This, in turn, helps avoid default risk, which could make you lose your home, hurt your credit score, raise your tax bill, and more.

What Do Lenders Look For on Your Bank Statement?

The reason lenders insist so much about your asset statement is to confirm you have enough funds and document your money source. You need to have all the required down payments when applying. Bank statements also help verify your income and source of money.

To qualify for the best mortgage rates and terms available, make sure your finances are consistent, and you have a great credit score. Also, don’t take out new lines of credit at least six months before you apply for a home loan. Your lender may occasionally check your statements after approving your mortgage, so do not make negative financial changes that may raise eyebrows.

How Many Asset Statements Does Your Lender Need to See?

Generally, you will be required to provide statements running for the last two or three months for all the asset accounts you want to use in your application. Why must you provide multiple asset statements, you ask? Well, your lender will want to dig deep to make sure they are making prudent lending decisions.

Your lender will also want to be double sure the funds in your account are really yours. Also, you need to prove you have not taken a loan from someone to meet the mortgage requirement. If the funds in your accounts have been there for the last two months, then it means it’s yours.

If you have a huge untraceable deposit on your asset statement, you will need to prove its source failure, to which your application may be denied. Are you expecting some money from a family member before the closing day? Make sure you notify your lender in advance to avoid making the process complex and lengthy.

Call the Better Rate Mortgage

Are you looking for a mortgage? We can tailor your mortgage to your specific needs. Our experts are also ready to answer any mortgage questions you may have: Whether it is the type of mortgages we offer or the criteria we use to determine creditworthiness. Contact Better Rate Mortgage today and kick start your journey towards owning your dream home.

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