What are liabilities?
By RealtyCrunch Inc•June, 14th 2020
During the loan process, lenders evaluate your overall financial suitability for a loan. Part of this involves evaluating your liabilities, which are are all the debts you owe. Your assets minus your liabilities equals your net worth. For liabilities, the major items to list include:
- Car Loan: the amount that you own on your vehicles
- Credit Card Debt: any unpaid balance that you don't pay off every month
- Mortgages: outstanding loans on any real estate you own
- Secured Debt: any debt you owe that is secured by collateral
- Unsecured Debt: any other debt not secured by collateral
- Unpaid Taxes: owed to local or federal governments
- Other Debt: could be court-ordered debt like child support or alamony
If you're planning to get a loan, take the time now to add your assets to our financial planning sheet.