I've been doing alot of research in terms of qualifying for a home loan and can't seem to find an answer to this. Many home loans require you to show a bank account statement of atleast 3 months of savings. I unfortunately don't have that but the monthly mortage is not an issue. Will my parents adding my name to their savings account allow me to still use that account as proof of the 3+ months savings to qualify for the loan? Will this help in any way towards getting approved for the loan. Thanks!
2006-09-27 17:01:23 · 5 answers · asked by michaeldorian 2 in Business & Finance ➔ Renting & Real Estate
No because it may be considered community property. They want to see that you have the savings in case you lose your job, you will still be able to pay your mortgage for a few months. It is called reserves. They usually want to see at least 6 months worth of payments in a savings account.
You may want to see if you can borrow the money from your parents and open up your own account. The lender will take savings, 401K, IRA etc. Any kind of money will do.
2006-09-27 17:06:30 · answer #1 · answered by GEE-GEE 5 · 0⤊ 0⤋
How much are you putting down on your home? If you are your broker can send out a "Verification of Deposit" which will give you your average balance for the months needed. There will have to be enough in the account to average the 3 months payment and interest. 401K and Liquidated stocks can be used. If you need to be added to your parents account. They will need to provide a letter stating that you have 100% access to the money in the account, but even then the lender may look to see if you were added recently to the account, which can cause problems.
If you FICO scores are high enough, you may be able to qualify for a stated asset loan. The inerest rate may be a bit higher but it will get you into your home.
2006-09-28 00:08:55 · answer #2 · answered by ? 2 · 0⤊ 0⤋
no it will not it will hurt you in a way because when you do that they are going to want to include your parents income in on it. and not only that it will help your parent credit not yours because they are primary. i did that in the beginning with my father and everything i did went towards his credit not mine because i was consider a user not the primary. what you need to do is start your own account and wait the 3 month time spand it takes to get the loan, by then you may see something better that you want than what you see out there right now. call it faith. remember God answers our prayers four ways, 1. YES, 2. NO, 3. NOT RIGHT NOW. AND 4. OR WAIT I HAVE SOMETHING BETTER FOR YOU MY CHILD. Do your three monthsaving account period since mortage is not an issue for you. establish your credit not someone elses credit.
2006-09-28 00:11:51 · answer #3 · answered by PHAT 2 · 0⤊ 0⤋
That the stupidest proof I've ever seen. It proves nothing. What the bank should be looking for is 3 months worth of pay stubs, an bank account statement that can verify your monthly expenses, and maybe a job history. Showing your name on a joint savings account means nothing unless it'll be used for collateral. Whatever works. Good luck!
2006-09-28 00:09:13 · answer #4 · answered by profitmessenger 2 · 0⤊ 0⤋
No, proof of income, job time and your debt ratio is what will qualify you. The bank statements are to verify you have the down payment. Lenders will usually not let you payment exceed 40% of your gross income.
2006-09-28 00:06:05 · answer #5 · answered by lobo 4 · 0⤊ 1⤋