64°F
weather icon Clear

How can I document my debts and assets on a mortgage application?

Q: What will mortgage lenders want to know about my debts and bills?

A: Mortgage applications ask you to list all debts and how much you spend each month on everything from rent or your current mortgage (plus hazard insurance, property taxes, mortgage insurance, homeowners association dues and home equity loans or lines of credit) to credit cards, car loans, student loans, child support and alimony.

Your lender needs to know how much you owe, the required monthly payments, the creditor’s name and address and the account numbers. Save copies of your most recent bills so you can find and accurately report this information.

You won’t have to submit any of those bills, however. The lender will check that information against your credit report, which not only will list all of your debts but also show whether you’re paying your bills on time.

Sometimes a debt won’t show up on your credit report, but you’re still required to disclose it on your mortgage application. Intentionally misrepresenting liabilities (or assets) constitutes fraud.

If you don’t have a credit history, your lender may check with your landlord and utility providers for a history of on-time payments.

Q: How can I prove that I have assets, too?

A: If you own certificates of deposit (CDs), savings accounts, retirement accounts, stocks, bonds, a life insurance policy with cash value, or real estate, you’ll need proof of ownership and market value.

Your two most recent statements from a bank or brokerage will normally satisfy lenders about stocks, bonds and monetary holdings.

For land or other real estate, you’ll need deeds and other documentation. Your lender will determine its current value.

If there have been any unusually large deposits (ones that exceed 50 percent of your total monthly qualifying income for the mortgage) into any of your accounts, the lender will need to know where the money came from. The lender wants to make sure it’s not from another loan that isn’t listed on your application and could prevent you from repaying your mortgage.

If the deposit’s source isn’t clear from your bank statement, you’ll need to document it.

For example, if you sold a car for cash, you could provide a copy of the title transfer, or if you recently received cash as a wedding gift, a copy of the wedding invitation might suffice.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Homeowner says HOA towed his car illegally

Most CCRs list the powers and authority of the board of directors, one of which is to sign contracts on behalf of the association. Although you did not send me a copy of the covenants, it would be most unusual if the association board did not have the right to sign a contract with a towing company. The covenants would not list what contracts can or cannot be signed. The ability to tow a vehicle in 2018 was most likely legal.

Tips on selling your home in the fall

For sellers wanting to close before the holiday festivities begin, below are five tips from real estate company, Opendoor, to help sell homes faster.

Neighbor wants owner to clean up tenant’s trash

If the association does remove the trash, the unit owner can be assessed all of the expenses that were incurred by the association. It also can place a lien on the unit if the owner fails to reimburse the association. In addition, the association can begin a foreclosure action against the unit owner.

Loud garge noise disturbing neighbors

Try contacting the owner one more time and invite him to meet with you at the community so that he can witness the noise. Arrange for some maintenance technician to be present for their suggestion as to how to remedy the problem and the cost.

Grandfathered rentals in HOA protected by law

If your CCRs did not prohibit renting or leasing at the time you purchased your rental homes the association cannot prohibit the renting or leasing of homes.

Don’t park in the handicap spot

Yes, you were wrong. And, no the association does not by law have to provide you any notice for parking in a handicap spot per NRS 116.3102 (1s).

Southern Nevada Health District implements pool regulations

As you are already aware, the new Southern Nevada Health District regulations went into effect July 1. At first the cyanuric acid level (stabilized chlorine) regulation was going to stay the same at 100 ppm, meaning the body of water would have to be drained and refilled as it always has been.

Variety of homeownership programs available

In what’s being called a game-changer in increasing homeownership rates in Las Vegas, Bank of America has included Southern Nevada in a new loan program to provide free down payment assistance to homebuyers.

HOA board member must follow pet rule like everyone else

Your officers and directors are homeowners. They have the same obligations and the same responsibilities in complying with the governing documents of the association. In this case, the management company should be sending a violation letter to the vice president.