Items you will need
- Bank statements
- Value of real estate owned
- Value of vehicles owned
- Value of other assets owned
- Loan balances
- Mortgage balances
- Current bills
Lenders often request a balance sheet from applicants as part of their loan application. A balance sheet provides lenders with a snapshot of the applicant's financial health. The balance sheet lists the applicant's assets, liabilities and net worth. Assets are things of monetary value owned by the applicant such as real estate, vehicles, stocks, bonds and money market accounts. Liabilities are things owed by the applicant such as mortgages, car loans and credit card debt. The applicant's net worth is equal to total assets minus total liabilities.
List your assets. At the top of the page, centered, write your name. On the next line, centered, write "Balance Sheet." On the third line, centered, put the date. Skip two lines and at the left of the page write "Assets." Under this heading begin listing your checking and savings accounts and their current balances, then investment accounts, which include stocks and bonds, with their current balances. Current valuations of stocks can be found online. Next list your home and its current value. Use the county assessor's value for real estate tax purposes if a current appraisal is not available. List your vehicles, boats and other valuables using the current value of each. Look up "blue book" values for cars and trucks online. After listing all assets, total them. Write "Total Assets" to the far left and double-underline the total.
List your liabilities. Leave a space after "Total Assets" and write "Liabilities and Equity" at the far left of the page. On the next line make a small indent and write "Liabilities." Under this heading begin listing your mortgages and other long-term loans with their current balances. List the current balances due on vehicles or other assets such as boats or motor-homes. Combine the current balances due on revolving debt, i.e., credit card debt, and add one line item for the total. Combine other debts of like-kind and include a single line for each, such as medical bills or utilities. List any other debts or bills you owe. Total the liabilities and put it under the last number. To the left, lined up with the subheading "Liabilities," write "Total Liabilities."
Figure your equity. Under "Total Liabilities," write "Equity." Write your name as the account name, for example, "John Doe Equity." Subtract the total liabilities from the total assets. If assets are larger than liabilities, enter the number as a positive. If liabilities are larger than assets, enter the number as a negative. Under this account at the far left, write "Total Liabilities and Equity." Total liabilities and equity equals total assets. Double-underline the number. The balance sheet is complete, in balance, with the top half (assets) in balance with the bottom half (liabilities and equity).
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