How to State Assets when Self Employed

Video Transcript

"Hello, my name is Brett Staggs and on behalf of Expert Village, I am here to show you how to organize your income and assets for a first time home buyer. When applying for your first home loan if you are a self employed person, there is a good chance you may have to state your assets. Which means you tell them how many assets you have and they are not necessarily going to ask for documentation. Because the program you will be under, is called a stated program. An important part about stating any assets is first and foremost you have to make sure they are believable and there is no, what they call shock factor. So if you are a plumber for instance and you state that you have five hundred thousand dollars in assets and even if you are being totally honest, they may ask for some documentations. Even though it started as a stated deal, an underwriter might say, we can't do this as stated anymore we have to verify the assets. And then you have to show them bank statements, retirement plan, investments, you will have to back that up. So it is important to first and foremost be very honest when stating your assets. Because that can be a huge part in your approval for your first home loan."