What Is Asset Verification?
Asset Verification: Proof that your down payment, closing costs and reserves come from acceptable, documented sources.
Asset verification is how the lender confirms that the money for your down payment, closing costs and reserves exists and comes from acceptable sources.
What lenders ask for
- Two months of statements for every account you're using, with all pages
- Explanations and proof for large deposits that aren't your regular pay
- Gift letters and proof of transfer for gifts
- Proof of sale for assets you sold, such as a car or stock
What's a "large deposit"?
For conventional loans, it's generally a single deposit over 50% of your monthly income. Other programs have similar rules.
Good to know
Money that appears without a paper trail, especially cash deposits, may not be usable. Keep funds where they are and document transfers.