What You Need To Know About Proving Assets For A Mortgage

I cannot stress the importance of getting pre-qualified for a mortgage in advance.  If I were to give you an exact time frame I would say at least 2 months.  The biggest reason I say that is due to what is involved in proving the assets needed for closing costs, prepaid items, and down payment. 

In most instances we will want your 2 most recent mortgage statements however on a Conventional loan Fannie Mae & Freddie Mac really only need the most recent.  We will ALWAYS need all pages of your statements even if they are blank.  For example, if it shows pages 1 of 6, we will need all 6 pages even if page 6 is blank.  There are no ifs, ands, or buts about it.  This is not difficult. 

We don’t necessarily care about what is going out as much as we doing as to the monies coming in.  The only time we care about what is going out is if we see a debit of a loan or some type of debt that isn’t included on your credit report.

You will need to prove where all monies come from for your deposits if we are not able to determine where the monies came from.  For instance, we can obviously see a direct deposit from your employer or a transfer from one account to the next.   If we cannot determine what is we will need a letter of explanation and show proof of where it came from.  My suggestion is to NOT make any cash deposits or take any monies from someone personally unless it is going to be a gift from a relative.  Also, I highly recommend to NOT make any transfers between accounts until after closing.  It just simplifies the documentation process for everyone. 

Getting a mortgage in today’s environment is not difficult IF you are dealing with a mortgage professional who is going to give you all of the correct information and IF you plan in advance.  Make sure to set aside your most recent paystub, 2 years of tax returns both business and personal if applicable, and your 2 most recent statements statements for all assets.