When you are purchasing a home there are many aspects to getting the best remortgage loan that some people are unaware of. First of all, if you are using assets to sell for your down payment, you have to provide the remortgage company all of your personal and financial documents, current and past. They are providing you with a large sum of money and they want to know everything about you before they commit to such a large financial transaction. It seems to be that the more money they are lending to you the more data that they want on you and your personal and financial history. Sometimes the reason is they want to make sure you are legitimate and not an unscrupulous con artist. This kind of documentation on personal property is only required if you need to sell some of your assets in order to have enough money for a down payment.
This way of coming up with money for a down payment on the purchase of a home is not an easy one for the homebuyer. Since it isn’t cash, the lender puts much stricter guidelines on the borrowers, especially when it comes to the documentation of the value of the assets that will be used as a source of funding for the down payment. With certain items it is harder to prove their value. One of the easier assets to prove their value is a vehicle of some kind. The value is always listed in the Blue Book for each model. The lender will want more documentation than that such as a copy of the Bill of Sale and the registration proving that you actually own the vehicle. When you sell the vehicle for funds for the down payment you must also make a copy of the check you received for the vehicle and a receipt for a deposit from your bank. And, this is the one that’s easy.
Other types of assets will be harder to prove their value. First of all, you have to prove, as with a vehicle, that you own the property. Not everyone keeps all the records of everything they purchase. Hopefully, if you’re trying to prove to the lender than something is yours, than you did keep the purchase documentation. Also, you will most likely have to have appraisals done on certain types of property such as jewelry or art work. You will also have to provide the same type of documentation regarding the sale of these items as you do with a vehicle. The lender will not accept funds if the borrower cannot prove the sale of an asset by accurate documentation. This type of funding your down payment is extremely difficult and tedious and you always run the risk of not coming up with enough money if you cannot provide adequate documentation.
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