Home loan question?

Question

We have been approved by the underwriters for our home loan however when asked to show proof of reserve meaning 2 mo. worth of payment do they look at ending balance or average balance on your bank statement? Right after I get paid we have the 2 mo. reserve but after I pay my bills we fall short will a loan office take this into consideration? I am so confused and don't want to be turned down just because I cant prove the 2 mo. payment requirement. On average we have 5000 dollars worth of deposits each month into our checking but our bank balance is a lot less then this due to monthly bills. Is there any way around this? Our anticipated close date is Aug. 15th so do they just need proof before we close date or is this something that we need right away?

Answer 1

You need to keep the 2 mo as your low balance not average balance.

Answer 2

Lenders do want to see the required post closing reserve requirement documented prior to docs being drawn. Be prepared to source any large or unusual deposits in the accounts you provide. You can elect to go to your bank and get a certified print out right after you get paid and before you do your bills. Be sure it covers at least 30 days (sometimes 60days) and that the authorized bank rep has certified it. Or reserves can also be documented with 401k or mutual funds, it doesn't have to be checking or savings

Answer 3

You need to show 2 months of reserves CURRENTLY in your bank account above and beyond your total closings costs.

So as long as you have enough money in your bank account to cover all of your closing costs and still have the 2 months reserves left over you should be fine.

hope this helps,
SELL2K

Answer 4

Reserves is money left after paying bills ie you have that amount of cash left over in a savings etc.

Answer 5

Contact any broker regarding this