Q: How can I create the best possible financial statement for my board package?
To create your best possible Financial Statement, do the math. I mean really do the math. It’s crucial that the sums on the statement reconcile with the attached supporting documents to the decimal. Once they all add up exactly, highlight or circle all the numbers on the supporting documents that tally up the total.
You need to document every item on the statement, except personal property. Don’t forget to add earnest money (deposit on contract) in the asset column. All numbers on the bank statements need to match the financial statement. It’s not necessarily how much you have in the bank today, but the amount you had corresponding to the date of the statements. If you own real estate, make sure to include costs associated with them (mortgages, maintenance, taxes, etc). If you own a lot of financial instruments and have various brokerage and retirement accounts, you might want to have your accountant speak with your broker and assist. Finally, the income you quote should match the income you list elsewhere in the application.
Our advice to buyers is to fill out the statement to the best of their abilities, and then bring it with the supporting documentation to our office so we can review together. Most often we recommend changes, and are here to help. We have done hundreds of Board Packages, and have several members of the team involved so that nothing goes overlooked.