What do you need to know about Asset verification?

Asset verification is a tedious process. This is a “pest” for loan officers and other professionals who deal with this kind of business. For examples, mortgage underwriters usually make an asset verification process. It is a very tiring process because they have to go through documentation and other paperworks just to get a mortgage. It is painfully a nuisance for those who are planning to buy a home. So, why is still existing?

Asset verification is not just a pain in the neck. It has an important role in the financial world. People have needs and most of the time, they overdraft. They cannot even track where their money came from and where they spent it. That is the reason why asset verification is done before loans and mortgages are given.

Asset Verification

For those who do not have assets or are burdened by the sheer number of their assets, the process is an invasive one. It invades your privacy. But, if you have enough money and properties with you, you will not get the level of questioning like other borrowers or buyers. If you are a first-time buyer and with not enough money in the banks, an extensive formal inquiry will be done. So, this is not the fault of the loan officer. They are just following some guidelines. The easiest way to not complicate things is to comply with it. How do you do so?

What will be considered as assets by the underwriter?

These are funds which you can use. In other words, they are also considered as “available” funds. The assets may be taken from the following sources:

• Savings
• Checking Accounts
• Money Market Accounts
• CDs
• Brokerage and Retirement Accounts
• Stocks and bonds under your name

You have to make sure that the assets in the loan or purchase application are verified. You should also make sure that your mortgage planner can verify that your money is enough. This should cover the closing costs as well as the down payment.

Asset verification is required by law. Banks should always do the verification. This is to ensure that the money is sourced properly. The banks can also do the verification through the review of bank statements or the latest status of the accounts therein listed.