topic Re: Mortg App Question re NET WORTH? in Mortgage Loans

Mortg App Question re NET WORTH?

payingoffdebt001 — Tue, 29 Jan 2013 21:42:52 GMT

Re: Total Assets minus Liabilities=net worth

The Mortgage app is asking me a few questions that I'd like to answer as 100% accurately as possible.

It ask to list all the Assets you have in different accounts, including value of any automobiles you might own - can I put down an expensive diamond ring, what about a boat? Since if I ever needed cash these are items that could be sold to bring in decent money.

If I can add in even just the ring at resale price I'll at least have a net worth of $68.00!!! instead of being negative due to my new auto loan plus low balances on 3 credit cards that i have listed under liabilities.

Re: Mortg App Question re NET WORTH?

Anonymous — Tue, 29 Jan 2013 22:24:18 GMT

I would think you could add the boat... But the ring im not 100% on.

Re: Mortg App Question re NET WORTH?

StartingOver10 — Tue, 29 Jan 2013 23:00:56 GMT

You can put down any and all assets you have. Do you have an appraisal for the ring? It is helpful if you do.

Re: Mortg App Question re NET WORTH?

Anonymous — Wed, 30 Jan 2013 00:16:44 GMT

Personally I would never include all my assets, I only show and give them just enough to approve the loan. I can always add more assets if needed. But its not really their business if I have $10 extra or $50million extra worth of assets.

Another thing I will not do, is do business with any Bank, CU, or Financial Institution with my Personal Banking. I dont want them scrutinizing my accounts and keeping an eye on what I spend and dont spend.

Re: Mortg App Question re NET WORTH?

cclee — Wed, 30 Jan 2013 00:35:55 GMT

I'm the same way JM, I won't take out loans or have credit cards with the bank that I keep my money.

Re: Mortg App Question re NET WORTH?

Anonymous — Wed, 30 Jan 2013 03:03:55 GMT

Ditto. My LO put down my income and 401K account as assets.

Re: Mortg App Question re NET WORTH?

payingoffdebt001 — Wed, 30 Jan 2013 04:00:12 GMT

Thanks for the responses!

INCOME was in a different section.

After completing the net worth area.. I realize how easily I could have been worth NEGATIVE but at least I'm worth $68 ! lol better than a negative!

(a) ASSETS: BANK BALANCE, vested 401K, STOCKS/BONDS, LIFE INSURANCE (CASH VALUE) , OWNED AUTOS AND OTHER ITEMIZED ASSETS.

(b) LIABILITIES: ALL accounts w/balances - ie revolving, auto loans, child suppport owed, etc

And not your monthly amounts but your entire balance owed is what you add.

Deduct (b) from (a) and that is your net worth. I may be missing some items but this was the basics of it.

Now if I would have completed this form on payday, due to current bank balance, things would have looked even better - but today wasnt payday so I listed exacts.

And to think - I have bought an older RV, used Ford Truck and older Nissan Maxima but didnt care to have my name on them so I wouldnt have to go to the court house every year to get the registration tags!

I'm learning alot through this one little section.

Re: Mortg App Question re NET WORTH?

StartingOver10 — Wed, 30 Jan 2013 12:44:07 GMT

When the asset section asks for owned vehicles, I think they mean any vehicle you have even if it is financed. The vehicle doesn't have to be owned outright. The asset will offset all or some of the liability depending upon value. What they don't want listed are leased vehicles because the borrower never owns it without exercising a purchase provision.

Also, JM said she wouldn't put down all of her assets, only enough to support the loan. I agree with that idea. Most people I have worked with need to put down all their assets in order to qualify, but certainly there are also those borrowers that have many more assets than they need to qualify. I agree totally with not having all of your eggs in the same basket (mortgage, checking, cc's etc at the same bank).

Re: Mortg App Question re NET WORTH?

Anonymous — Wed, 30 Jan 2013 12:51:53 GMT

Now that I think of it, my income and 401K figures were indeed in separate places on the form. There was also a place for my bonuses to be recorded.

Re: Mortg App Question re NET WORTH?

payingoffdebt001 — Wed, 30 Jan 2013 14:53:07 GMT

I feel okay now about how I answered, at least its in the positive without any vehicles.

STARTINGOVER, this particular loan app ask that you list under the Asset column OWNED Vehicles and then under the Liabilities Column it ask for all outstanding debts INCLUDING automobile "loans", house loans etc.

Re: Mortg App Question re NET WORTH?

StartingOver10 — Wed, 30 Jan 2013 15:01:53 GMT

Yes, I know. That should be the 1003 application ( Uniform Residential Loan Application) which is the normal loan app used throughout the country.

It does NOT require you to own the vehicle free and clear. I am extremely familiar with this application both personally and professionally. It does not mean that you own the vehicle free it clear. It is the valuation of the vehicle (put in kbb or NADA value) and then you also put in the payment under the liability section. The specification is to differentiate between leased vehicles and owned vehicles.

Re: Mortg App Question re NET WORTH?

payingoffdebt001 — Wed, 30 Jan 2013 15:25:29 GMT

Thanks - its the first time for me to see such a form and now that you mention that - I believe I've seen on the Suze O Show that callers do list what they owe on a house and what its worth to help figure their net worth. Darn it - wish I had put my new car's value down but I ended up turning in my form yesterday.

Re: Mortg App Question re NET WORTH?

StartingOver10 — Wed, 30 Jan 2013 15:28:22 GMT

Call your LO and alert them to the error. It can be fixed

Re: Mortg App Question re NET WORTH?

payingoffdebt001 — Wed, 30 Jan 2013 16:21:33 GMT

Your RIGHT, let me do that right now.