What this form is for
Banks require a Personal Financial Statement when you apply for a business loan, line of credit, or personal guarantee. This snapshot of your personal assets, liabilities, and net worth helps lenders assess your ability to repay debt and provides collateral visibility outside your business.
Before you start
- Recent bank statements for all checking, savings, money market, and brokerage accounts showing current balances
- Latest mortgage statements and property tax appraisals or recent market valuations for real estate you own
- Retirement account statements including 401k, IRA, and pension plan balances
- Current loan balances for mortgages, auto loans, student loans, credit cards, and personal lines of credit
- Documentation of other assets such as vehicle titles, life insurance cash surrender values, and notes receivable
Step-by-step
1. Fill in your personal identifying information at the top including full legal name, current address, Social Security number, and date of birth. If applying jointly with a spouse, both names and information go here.
2. List all cash and liquid assets with exact balances as of the statement date, including each bank account separately by institution and account type. Total this section.
3. Detail all marketable securities such as stocks, bonds, mutual funds, and brokerage accounts. Use current market value, not purchase price.
4. Itemize real estate holdings with property addresses, current market values, original purchase dates, and original costs. Texas homestead protections apply to your primary residence, but lenders still want full visibility.
5. Record retirement accounts separately from other investments. List the account type, institution, and current vested balance.
6. List personal property including vehicles with make, model, year, and current value, plus any valuable assets like jewelry, collectibles, or equipment.
7. Tally all liabilities starting with real estate mortgages, noting lender name, original loan amount, current balance, monthly payment, and collateral address.
8. Add installment debts like auto loans and student loans with the same detail, then credit card balances showing creditor and current amount owed.
9. Calculate your total assets and total liabilities, then subtract liabilities from assets to arrive at your net worth. Double-check this calculation.
10. Sign and date the form. Texas law may require notarization for certain lending transactions, so confirm with your lender before submitting.
What lenders look for
- Banks scrutinize your debt-to-asset ratio and liquidity. A strong net worth means little if all your assets are tied up in retirement accounts or real estate you cannot readily convert to cash.
- Common mistakes include outdated account balances, forgetting to list contingent liabilities like co-signed loans or pending lawsuits, and inflating asset values without documentation.
- Accuracy matters more than presentation. Discrepancies between your Personal Financial Statement and credit reports raise red flags and slow approval.