What this form is for
Banks and commercial lenders require this form when you apply for a business loan, line of credit, or personal guarantee. It shows your complete financial picture outside the business to help underwriters assess your ability to repay if business cash flow falls short.
Before you start
- Recent statements for all bank accounts, retirement accounts, brokerage accounts, and certificates of deposit
- Current market value estimates for real estate you own, vehicles, and any significant personal property like jewelry or collectibles
- Payoff balances and account numbers for mortgages, auto loans, credit cards, student loans, and any other debts
- Recent pay stubs or tax returns showing annual income from employment, investments, rental properties, or other sources
- Life insurance policies with cash surrender values and any notes payable to you from others
Step-by-step
1. Fill in your personal identification at the top including full legal name, date of birth, Social Security number, current address, and contact information. If married, include spouse information as Texas is a community property state and marital status affects asset classification.
2. List all cash and liquid assets with current balances: checking accounts, savings accounts, money market funds, and certificates of deposit. Include institution names and account numbers.
3. Document all investment assets: stocks, bonds, mutual funds, retirement accounts like 401k or IRA, and any business ownership interests with estimated current values.
4. Itemize real estate holdings with property addresses, current market values, original purchase prices, and outstanding mortgage balances. Texas homestead protections may apply to your primary residence.
5. List personal property including vehicles with make, model, year and fair market value, plus any valuable assets like boats, jewelry, art, or collectibles worth over 500 dollars.
6. Total all asset categories and enter the sum in the designated TOTAL ASSETS line.
7. Document all liabilities starting with real estate debt, then installment loans, credit card balances, personal loans, tax obligations, and any other amounts owed. Include creditor names, account numbers, original loan amounts, current balances, and monthly payments.
8. Add all liabilities and enter TOTAL LIABILITIES.
9. Subtract total liabilities from total assets to calculate NET WORTH. Double-check this calculation as it's the key figure lenders evaluate.
10. Sign and date the form. Your signature certifies accuracy under penalty of perjury in Texas.
What lenders look for
- Underwriters compare your net worth to the loan amount requested, typically looking for net worth at least equal to or exceeding the loan. Assets must be verifiable, so avoid inflating property values or listing items you cannot document.
- The most common mistakes are omitting liabilities like co-signed loans or forgotten credit cards, listing retirement account values without noting early withdrawal penalties reduce available cash, and failing to update the form when your financial situation changes during the application process.