What are my assets and why do I need to include them?
We will look at your assets and income to calculate your net worth. This allows us to see how you will be repaying your loan and how you will continue to make payments if a life event, such as loss of employment, were to occur. Assets to include:
- Cash & cash equivalents: savings accounts, checking accounts, money markets and certificates of deposit
- Tangible assets: physical property such as cars, properties, boats, jewelry, etc.
- Intangible assets: nonphysical assets such as stocks, bonds, IRAs, 401(k)s
- Liquid assets: cash or things that can be sold or traded for cash quickly
- Fixed assets: items that may take longer to convert to cash and may lose value in the process
- Fixed-income assets: investment money that is lent for interest such as certificates of deposit, securities, and government bonds