A transfer on death account (TOD) is an investment account that is designed to make the transfer of an account to a designated beneficiary easier. Transfer on death accounts helps those who want to avoid going through probate.
Some people have found success in real estate investment but it’s not a venture for everyone. It’s a serious commitment to borrow money from a mortgage lender. With that being said, you should understand that there are pros and cons to investing in real estate. These factors will affect your decision to invest or not. [Read more…]
Now that you know what liquid assets are, you have to know how to find them as they are important in determining your Kansas City mortgage rate. Lenders will use your net liquid assets to determine if you can meet the debt obligations.
You can also use your liquid assets if you need cash fast, such as for an unexpected medical bill. Finding your liquid assets doesn’t have to be hard and is a simple matter of putting the information together. [Read more…]
You have found yourself unable to pay your Kansas City home loan or need extra money for an unforeseen medical emergency. If you have liquid assets available, they can be quickly turned into extra funds should you need them in a hurry.
What Items Are Considered Liquid Assets?
A liquid asset is an item of value that you own that can be converted into cash should the need arise. Liquid assets can include:
- Funds in a savings account
When converted into cash, these items will retain their value. Remember, just because an item can be turned into cash does not make it a liquid asset. Some examples of non-liquid assets are:
The reason these particular items are not considered liquid assets is because it often takes time to find a buyer for them. Even if a buyer is quickly found, it will take time to get the item appraised and sold. There is also the possibility that when sold, they will not be sold at their actual value.
How Are Liquid Assets & Home Loans Connected?
If you are liquid asset poor, you run the risk of falling into debt or becoming behind on your Kansas City home loan payments should you find yourself scrapped for cash. If there is no “slack” in your budget, then you will have a difficult time making payments for your Kansas City home loan and other bills.
Lenders want you to be able repay your loans. When you apply for a Kansas City home loan, the availability of liquid assets is a key component that assures lenders that you will be able to pay it off. Should you lose your job or run into financial trouble, having enough liquid assets available will keep you afloat until you can get back on your feet.