What is an Asset Statement?

If you are applying for a mortgage, personal loan, or financial aid, there is a chance you will be asked for an ‘asset statement’, which is somewhat unfamiliar to most people. It’s not as troublesome as it sounds, though.

In this article, we’ll explain what an asset statement is, why it matters, what it includes, and how to prepare one. It helps to understand asset statements while buying a home or applying for a loan because it can help your application go more smoothly.

What is an Asset Statement?

An asset statement is a document that lists the money and valuable items you own. It shows your financial strength to lenders, banks, or other institutions. The purpose is to show that you have some account or asset that will be able to pay back a loan or a down payment, or a financial commitment.

To put it simply, it’s a picture of your holdings, not your debts.

Why Lenders Ask for Asset Statements

Lenders use asset statements to see if you can afford what you’re applying for—whether it’s a mortgage, car loan, or even a rental. They want to know:

• Do you have enough money saved?
• Can you handle the monthly payments?
• Do you have a financial cushion in case of emergencies?

For example, when you apply for a mortgage, the lender wants to make sure you have enough money for the down payment and closing costs. An asset statement proves it.

What Counts as an Asset?

Assets are things you own that have value. They can be cash, savings, property, or investments. Here are some common examples:

Liquid Assets (Easy-to-Access Money)

• Bank account balances (checking and savings)
• Cash
• Certificates of deposit (CDs)
• Money market accounts

Investment Assets

• Stocks and bonds
• Retirement accounts (401(k), IRA)
• Mutual funds

Property Assets

• Real estate (homes, land)
• Vehicles
• Amount of personal valuable items (art, jewelry, collectibles)

Lenders’ views of all assets are not equal, and they prefer liquid assets so they can access them quickly if necessary.

What Does an Asset Statement Look Like?

An asset statement can be documentation of assets, like a bank statement, or a print-out of your investment account. You can also create a list yourself, but it should be supported with documents to prove ownership and value.
Most lenders want:

• The name on the account
• Current balance
• Account number
• Type of asset (savings, stocks, etc.)
• Date of the statement (usually within the last 60 days)

You may need to provide two or three months’ worth of statements to show consistency.

How to Prepare an Asset Statement

Here’s a step-by-step guide to preparing your asset statement for a loan or mortgage:

1. Gather Your Documents
Collect recent statements from your:

• Bank accounts
• Retirement plans
• Investment accounts
• Other valuable assets (titles for your car or home)

Make sure the statements are clear, up to date, and show your name and account balance.

2. List Your Assets
Make a list that includes:

• The type of asset (savings, stocks, etc.)
• Where it’s held (bank or institution name)
• Current balance or value
• Account number (last 4 digits are usually enough)

3. Add Supporting Information
Include any documents that show the value of non-bank assets:

• Home appraisals
• Vehicle titles with the estimated value
• Letters from financial advisors for investment accounts

4. Double-Check for Accuracy
Make sure everything is accurate and matches what you submitted to the lender on your application. Any major differences can cause delays or raise red flags.

What Lenders Look for in an Asset Statement

Lenders assess you’re financial stability. Here’s what they look for:

1. Sufficient Funds for the Loan
For a mortgage, they’ll want to see enough for:

• Down payment (usually 3–20% of home price)
• Closing costs (2–5% of home price)
• Reserves (money left over after closing, sometimes 1–3 months of payments)

2. Source of the Funds
They check if your money is from acceptable sources like:

• Personal savings
• Paychecks
• Tax refunds
• Sale of property

They may ask questions if your bank suddenly shows a large deposit. You’ll need to explain where the money came from—like selling a car or getting a gift.

3. Consistency
Lenders like to see that your accounts are stable and not suddenly filled with money just before applying. If your savings have been steady over several months, that looks better.

Common Mistakes to Avoid

When preparing your asset statement, avoid these mistakes:

❌ Hiding Debt
Remember, an asset statement is about what you own, but if your assets are borrowed (like using a credit card advance), that won’t help your case.
❌ Including Unrealistic Values
Don’t overestimate the value of your home or car. Use fair market values backed by documents.
❌ Ignoring Lender Rules
Some lenders don’t count certain assets (like retirement accounts) the same way. Ask your lender what they accept.

Do You Need an Asset Statement for a VA Loan?

Yes, even if you’re applying for a VA loan—which often requires no down payment—you may still need to provide an asset statement. Lenders want to see that you can:

• Pay for closing costs
• Handle monthly payments
• Manage surprise expenses

Although VA loans are flexible, proof of financial stability is still required.

What If You Don’t Have Many Assets?

If your asset statement shows low balances, you may still qualify, especially for loans such as:

• VA loans
• FHA loans
• USDA loans

These programs are designed for people who don’t have large savings but are still financially responsible. You can also demonstrate a steady income or provide a co-signer to help strengthen your application.

So, what is an asset statement? This is a straightforward method to show what assets you have and how financially prepared you are. It opens the way to getting a mortgage, personal loan, or financial aid; essentially, this asset statement helps lenders to see that you are financially prepared to repay the loan.

To get it right:

• Know what counts as an asset.
• Collect your documents.
• Be honest and accurate.
• Understand what your lender is looking for.

With a solid asset statement, you can move one step closer to getting approved for the loan you need.