Compare Mortgage Rates icon

Compare Mortgage Rates

Find Mortgage Lenders icon

Find Mortgage Lenders

Assets Documentation and Down Payment Verification

Where did you get the money for your down payment? You need to be ready, willing and able to tell a lender because without proper documentation, the lender may be hesitant to approve your loan. The only exception is a type of mortgage product appropriately called a “No Asset Verification” loan.

Providing the lender with documented proof of the source of your down payment serves as both a quality control tool and an underwriting tool. As a quality control tool, it can help reduce incidences of fraud. It also helps loan underwriters decide whether you have the positive traits lenders look for in prospective borrowers.

Mortgage lenders prefer that your down payment comes from deposits made over time into a personal savings account. Such activity shows them you’re stable and capable of saving.

If you have additional assets upon which you can draw should you encounter difficult financial times in the future, be sure to provide proof of those as well. Lenders really like it when prospective borrowers have what lenders refer to as reserve funds. Such funds offer additional proof of a borrower’s ability to save.

When it comes to your down payment, lenders want to know the source of the funds. They want to review as much supporting paperwork as you have available so start gathering it as soon as you know you’ll be applying for a mortgage.

In this section you’ll find plenty of helpful advice on both verifying and documenting the assets you’ll be using as a down payment.