Question about declaring assets on mortgage broker form (loan, 401k, approved)

[kibblesandbits]

We're first-time home buyers who have a question about declaring all our assets on the form the mortgage broker sent us. My husband's income and our savings is enough to cover the down payment/mortgage amount we want, without declaring what we have in assets. My husband doesn't want to declare how much we have in assets if that is not required information, since we can afford our mortgage with our salaries and savings info. Do we have to declare this info in this circumstance?

[FalconheadWest]

It doesn't matter if what you have is enough to cover a down payment and mortgage payments. It's all about debt to income ratios and if the income coming in isn't in the correct bracket for the lender to feel comfortable with, they want to know what other assets you have in order to make up for it.

I never suggest giving all that info, unless you have to, but there is nothing wrong with showing one asset like an IRA or 401K to make sure ratios are well above what is needed so underwriting doesn't kick your file out or hold on to it too long thinking you're a high-risk being right on the cusp.

If you haven't filled out the forms yet, you don't know you're "approved" with your salary yet.

[chet everett]

There is really no downside whatsoever to being honest. If your are honest and less than fully complete there is no real upside.

If your have a very healthy asset base the lender may approve for a larger loan / give you an incentive to borrow more at a lower rate.