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