GuidesDocuments
Personal balance sheet: how to prepare it
Assets, debts, net worth and supporting documents.
Properties owned, with estimated values
Bank accounts and investments
Shares in companies
Assets to list
- Properties owned, with estimated values
- Bank accounts and investments
- Shares in companies
- Vehicles and other valuables
Debts to list
- Mortgages, by property
- Credit lines and their balances
- Personal and car loans
- Guarantees given on other files
Supporting documents
Each significant line needs proof. A recent statement is usually enough.
Valuing your properties honestly
Enter a defensible value, supported by recent sales in the area.
An inflated value surfaces at appraisal and undermines the whole request.
What people forget to declare
- Guarantees given for a third party
- Credit card balances
- A family loan never formalized
- Tax owing on a recent gain
Keeping it current
Redo it with each transaction. A document two years old will be refused.
Net worth, the decisive figure
It measures what would remain if everything sold and all debts were paid.
The lender compares it to the amount requested.
Solid net worth sometimes offsets a modest income.
Redoing it with each change
A sale, a purchase or a new loan changes your balance sheet.
Update it within a month of the event.
That avoids rebuilding it under pressure.
