Do lenders look at 401(k) assets?

[Anonymous]

Do mortgage lenders factor in 401(k) assets when determining credit worthiness?  We're trying to decide to buy a bigger house or re-fi existing (ARM adjust this summer).  OK credit (high 600's/low 700's), about 100K equity in existing home, but not a huge savings account (15K).  Does having 200K in 401(k) accounts help?  We have plenty of monthly income to pay a higher monthly mortgage, but i don't know if we have enough liquid savings to make a lender comfortable that we have enough "reserves" (if that's the correct term?) to be OK in an emergency.  We have both been fortunate to see our income increase significantly in recent months.  Thanks.

[Anonymous]

i can't speak for all but fha does.we just used my 401k as an asset.i had 14,000 in my 401k and only 3500.00 in cash reserves.

Message Edited by jermandbeck on 06-11-2008 06:11 PM

[DallasLoanGuy]

can you borrow against the 401K in emergency?

what does the terms and conditions say about that? to use the 401K balance as assets, it has to be liquid. if the terms and conditions allow access in emergency, then you will typically be able to use 70% of the balance.(100% of vested - taxes and withdraw penalty)

[Anonymous]

correct....

[DallasLoanGuy]

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jermandbeck wrote:

correct....

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thank you for that validation....

i think