| How-to
instructions for completing a Personal Financial Statement
The following
is a guide to completing a Personal Financial Statement. The
information below is
what lending institutions need to accurately process a business
or personal loan.
Whether you are doing it by hand (which we don't recommend)
or using the Personal Financial Statement software the guidelines
below will help with the prep work of completing the financial
statement.
Step 1: Enter the
following personal information:
-First name
-Address
-Personal Phone Number
-Middle Initial
-City
-Social Security Number
-Last Name
-State
-Birth Date
-Zip Code
Step 2: Enter the
following employment information:
-Employer
-City
-Position
-State
-Years of employment
-Zip Code
-Employer's Address
-Employer's Phone Number
If
you are filing a Joint statement you will need to repeat steps
1 and 2 with your spouse or business partner's information.
Step
3: Schedule A – Deposit Relationships
(Bank Accounts)
Enter the following bank account information:
-Cash on hand and in banks
(Example: Checking accounts)
-Savings accounts
(Example: Interest bearing accounts)
-Retirement or IRA accounts
(Example: An account that is used strictly for saving
for retirement)
Step 4: Schedule
B – Securities
(Stocks, Bonds, Debentures,
Corporations, LLCs, LLPs, etc...)
Enter the following information about each security owned:
-Security Name
-Purchase Price
-Number of Shares
-Current Value
-Exchange (if listed)
-Percent owned
-Pledged
-Registered in the name of
Step 5: Schedule C –
Real Estate
Enter the following information about each property (Real Estate)
owned:
-Property Type
Home, Vacation Home, Rental Property, Land, etc...
Homestead - A
parcel of land used by the owner as a primary residence.
-Description
Example: Personal Home, Rental Property on 1st Street,
office building.
-Year Acquired
The year the property was purchased.
-Percent
Owned
If
you and your wife own the real estate, enter the combined percent
of
ownership.
If you own the real estate with another entity, enter only your
percent share.
-Lien Holder
Usually your bank or Mortgage Company.
-Market Value
A realistic estimate of the current market value based on like
property sales.
-Current Balance
The current amount owed on the Real Estate.
-Monthly Payment
The amount paid every month on your mortgage.
-Rental
Income
Enter the total rental income received on this property per
month.
-Title
in the name of:
Enter the exact name of the person(s)/entity on the title.
Step 6: Notes Payable
(Do Not Enter Any Real Estate Mortgages)
Enter the following Note Payable information:
-Note Type
Auto
debt, note to bank, personal note to individual, any note that
has a loan date and maturity date.
-Creditor
Enter whom you must repay the loan to.
-Date of Loan
The date the loan was made. Example: 06/15/02.
-Maturity Date
Enter the date of the final payment. Example: 06/15/06
-Collateral
Enter
items pledged to secure this loan. Example: Your vehicle
is the collateral for your vehicle loan.
-Current
Balance
The amount owed on the Note.
-Payment
Frequency
How often your payments are made.
Step 7: Other Assets
Enter
in all other assets that were not covered in the previous sections.
a.
Automobiles
b.
Restricted or Margin Accounts
c.
Cash Value of Life Insurance (The amount of money you will receive
if you cash out your insurance policy. This is not the
Insured Value).
d.
Accounts and Notes Receivable (Money owed to you that
can be documented).
e.
Household Assets and Personal Assets (The amount of coverage
on your homeowners insurance policy is a starting point).
f.
All Other Assets (Art, Boat, Jewelry, Furs, Collectables, Antiques,
Numismatics, Motorcycles, etc.)
-Description
Describe the asset.
-Value
Enter the estimated market value of the asset based on documented
like sales.
-Percent Owned
Your percent ownership in the asset.
-Registered in the name of
Name on title, license or ownership papers.
Step 8: Other Liabilities
Enter other liabilities that were not coved
in the previous sections.
Example: Visa, MasterCard, American Express, Sears, Dillard’s,
Home Depot, etc.
Step 9: Annual Income –
Enter income amounts for the following:
a. Salary and Wages for Individual
b. Salary and Wages for Spouse
c. Bonuses and Commissions
e. Dividends and Interest Income
f. Net Real Estate Income
g. Oil and Gas Income/Royalties
h. All other Income.
-Description
Give
a brief description of each Income. This will assist you
when updating your PFS.
-Amount
Enter the amount of each income.
Step 10: Annual Expenditures
– Enter
payment amounts for the following:
a. Auto, Credit Cards, etc.
b. Lease Obligations
c. Mortgage/Rental Payments
d. Other Debt Service
e. Alimony, Child Support, etc.
f. Auto, Life and Health Insurance Premiums
g. All Other Obligations.
-Description
Give
a brief description of the expenditure. This will assist
you when updating your PFS.
-Amount
Enter
the yearly payment amount.
Step 11: General Information
-Contingent Liabilities:
-If Yes – specify the amount of contingent liabilities
you are a part of.
-If No – go to the next step.
-Do you have a will?
Answer yes or no.
-Are you presently involved in divorce proceedings?
Answer yes or no.
-Have you ever taken bankruptcy?
Answer yes or no.
-Are you a partner or officer on any other venture?
-If Yes – Explain.
-If No – go to the next question.
-Are you a defendant in any suit or legal action?
-If Yes – Explain.
-If No – go to the next question.
-Have you any judgments against you?
-If Yes – Explain.
-If No – go to the next question.
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