When you apply for a home loan, we will evaluate your application in terms of your income, credit, collateral, and your assets or the cash involved in the sale of your home, as well as your cash reserves after the loan closes. While assets do not come up often in terms of qualifying for a mortgage, they are still very important.

We will want to verify the source of your down payment and closing costs, along with your other assets. You cannot just come up with the money for a mortgage; we want to know where your assets came from. If you can show that your funds came from a savings account, we will be more confident in you as a borrower.

You can expect to document the funds you use for your down payment, as well as any other reserves you have. This is important because you may need to rely on your assets if you experience a financial difficulty, and we will want to know that you have money set aside to pay the mortgage if you run into trouble.

Home Loan

What are Assets?


Assets that can be considered in your application by us include: retirement funds, stocks, mutual funds, bonds, life insurance policies, and an estimated value of property, like real estate or a boat. You can use these assets to qualify for a loan, even if you have limited income.

Assets include money used for:
  • Your down payment
  • Closing costs
  • Prepaid costs like homeowners insurance and property taxes, or to establish an escrow account to pay these items in the future
  • Reserves, or the money you have left after the loan closes
Retirement Funds

Lender Requirements for Assets

We will want to verify that you have enough money to cover your mortgage payments without help, and you will also need to demonstrate financial stability.

You should plan ahead before you apply for a loan because your assets must be "seasoned." This just means that large deposits and assets need to have been in your bank account for at least one month, and we must be able to verify where they came from and why.

Asset Documentation

Asset Documentation

You will need documentation of the paper trail for any money you use for your down payment and closing costs. By far, the easiest way to do this is with copies of your bank statements. If the money has remained in the bank account for the entire period covered by these statements, your assets will be seasoned. If your statements show an unusual or large deposit, we will ask for documentation of its source.

Keep in mind that you will need additional documentation if you use gift money for your down payment. Most lenders need the money donor to sign a gift letter that states your relationship, the address of the property that will be purchased, the amount of money given as a gift, and a statement saying the money is provided as a gift, not a loan.

Mutual Funds

Avoid Asset Problems

You may run into one of several problems during underwriting. Avoid these trouble areas:

  • Do you have any large deposits that seem excessive for your income? The underwriter will wonder where the money is coming from and may assume you got a loan that is not on your credit report.
  • Do you have too many cash deposits? We see cash deposits into your bank account as a red flag.
  • Are you getting gift money or assistance from the seller? Be careful, as some lenders will be concerned about your ability to repay your mortgage.
Life Insurance Policies

Contact Us Today

Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:
  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020