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Now that you know what liquid assets are, you have to know how to find them as they are important in determining your Kansas City mortgage rate. Lenders will use your net liquid assets to determine if you can meet the debt obligations.

You can also use your liquid assets if you need cash fast, such as for an unexpected medical bill. Finding your liquid assets doesn’t have to be hard and is a simple matter of putting the information together.

What Assets Do You Have?

First, you need to determine what your assets are. These can include:

  • Cash
  • Real estate
  • Jewelry
  • Mutual funds
  • Vehicles

Next, separate assets that can be turned into cash quickly as opposed to those that can’t. Those that can be turned into cash are your liquid assets.

Determining Liquid Net Worth

Your net worth, or wealth, is the value of the assets you own minus any debt you owe. Narrowing it down to your liquid net worth lets you know what assets can be turned into cash.

To begin, set up a spreadsheet to determine your liquid net worth. In one column, list your liquid assets:

  • Saving accounts
  • Stocks
  • Bonds

Then, in another column, list your debts, or liabilities:

  • Credit cards
  • Mortgage
  • Unsecured loans

Once you are done, add them all up and then subtract the debts from the assets. If the number is negative, you should pay down your credit cards first. If you are lucky and are in the green, you are known as a high net worth individual (HNWI). There is no set number determining who can or cannot be a high net worth individual, but it is generally quoted in liquid assets over a certain amount, say, $100,000. Being a high net worth individual is beneficial to you in that you can generally qualify for loans much easier than if you were not.

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