Asset Documentation

Without question this is the most “annoying” part of the paperwork process when applying for a home loan. Please read this section carefully as we truly need what we’re asking for.

Two Months of Bank Statements

Please provide ALL pages of the last two months of bank statements. Example: If it says page 1 of 4 then we need all four pages, even if page 4 is blank.

Note: Online print outs most likely will NOT be sufficient. The statements need to show your name and full account number and online print outs typically don’t show this information.

Please let us know which account the funds for closing are coming from.

Canceled Check For Earnest and Option Money

Once the option and earnest money checks have been cashed, please provide a copy of the canceled checks an updated bank statement showing those checks have cleared.

If you do not have an updated statement showing the option and earnest money checks as cleared then please print a transaction history showing these checks. BE SURE to have the transaction history goes far enough back in history to show multiple transactions that appeared on the most recent statement you provided to us. We need this overlap of transactions as proof that all transactions are shown.

Large Deposits Documentation

Note: a large deposit is considered any deposit that is more than 50% of our gross monthly income.

We need documentation for any non-payroll related large deposits into your personal bank accounts. For example, if non-payroll deposits are shown then please provide the canceled checks and a written explanation of what the deposits were for. If money is transferred from another account then please provide a monthly statement for that other account where the money came from.

Joint Account Letter

If an asset statement shows multiple names on the account and any of those people are not on the loan, please provide a signed letter from the person not on the loan stating: “I, FULL NAME, certify that all the funds in the <BANK NAME> account number <XXXX> are 100% accessible and allowed to be used by <BORROWER’S NAME> for the purpose of a home loan.”

Gift Letter

If any portion of the funds will be (or have been) gifted please provide the name, address, email address, phone number, and relationship of person gifting the funds. We will also need a bank statement from the donor’s account showing the funds transferred. Please call us if you have any questions about this to ensure it’s done “correctly.”

Proof Of Liquidation

If you are planning on using funds from a 401k and/or brokerage account with non-liquid assets then we will need proof of liquidation of those funds. For example, if you borrow funds from your 401k then we’ll need documentation showing the funds going into your checking account (see “Large Deposits Documentation” above). Moreover, if have a brokerage account and plan on selling some stock for the closing we’ll then need documentation of the sale of those stocks.

CPA Letter When Using Business Assets

If you are self-employed and will using funds from your business account for closing, we will need a letter from your CPA / Bookkeeper indicating that the withdrawal of the funds won’t adversely impact your business.