Completing a personal financial declaration

The lenders will ask for a personal financial declaration to support the decision to expand extra funds on a credit line. A Certified Public Accountant or representatives from a local bank can help the individuals in finishing a personal financial statement. Personal financial statements show information regarding the assets, expenses, sources of income and liabilities of an individual. Make sure you are using the right personal financial declaration form with your lender. In addition to this, the lender may request you to provide the necessary documents to support the information that are stated in the personal financial statement. This may consist of real estate appraisal, bank statements, recent pay stub and mortgage loan statement. If required, you may take personal finance advice from the financial experts.

Completing a personal financial declaration – Essential steps you need to follow

Here are discussed about the essential steps that you need to follow while completing a personal financial declaration.

Fill out the recognized details – While completing a personal financial declaration, you will have to fill out the recognized details. If the personal financial statement that you’re filing out is for yourself and your better half, make sure you include the recognizing details of both of you.
Make a list of each possession in the particular section – Your valuable home and any other real estate you possess should be listed at the present market value. The existing balance of all bank accounts, retirement accounts, investment accounts and the cash surrender value of all life insurance policies are included in this particular section.
Create a list of each liability in the section – You need to create a list of any asset owned as a form of security for a mortgage loan. This may consist of your home or car loan. The loans that are taken out against the value of life insurance policies, outstanding tax payments and other outstanding dues such as credit card bills are included in the particular section.
Provide the information of all income sources – You will have to provide the information of all income sources in the section. The income may consist of salary, bonuses, commissions, interest, dividend income, business or partnership income, investment income and rental real estate. If you earn profit by selling stock, you may include that as part of your investment income. The information need to be provided on yearly basis.

Provide information for all expenditures – The expenses consist of medical bills, child care, dental expenses, income tax payments, mortgage payments, property taxes, college saving plan and IRA. Many lenders may ask you to provide information for the portion of mortgage payments that go towards principal versus interest. Make sure you provide this information on yearly basis.

Thus, by following the above steps, you will be able to complete a personal financial statement successfully.

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