Definition
Assets are anything you own that has a monetary value, such as cash, investments, real estate, or other valuable possessions.
Understanding Assets in Mortgages
Assets play a role during the mortgage application process. Lenders review them to understand your financial health. Simple terms: assets are what you own that have value. Example: If you have $10,000 in savings and a car worth $5,000, your total assets equal $15,000. This helps lenders gauge your ability to repay a loan. It's not just about cash; assets can include property, stocks, or retirement funds. A common misconception is that assets alone decide loan approval. They are part of a bigger financial picture, including income and credit history.
