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jmp1105
LIF Adolescent
Member since 12/11 553 total posts
Name:
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Reserves when getting a mortgage
How much in cash reserves did your lender require you to have when getting a mortgage?
TIA
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Posted 6/16/14 3:18 PM  |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Reserves when getting a mortgage
I'm not sure I understand the question, are you asking how much for down payment? Or how much left over after down payment and closing fees?
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| Posted 6/16/14 4:01 PM |
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NYCGirl80
I love my kiddies!
Member since 5/11 10413 total posts
Name:
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Re: Reserves when getting a mortgage
Our lender didn't tell us "you need $x in reserve" after you close. But it's definitely part of the calculation. I'm also pretty sure it will vary, depending on what type of loan you're approved for.
I'd talk to a mortgage specialist or broker if you have any questions or concerns. They'll be able to point you in the right direction, tell you what you qualify for, or what you need to do to qualify.
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| Posted 6/16/14 4:11 PM |
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jmp1105
LIF Adolescent
Member since 12/11 553 total posts
Name:
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Re: Reserves when getting a mortgage
Thanks. I have a mortgage broker but he happens to be an idiot so I don't think he can explain it to us.
if we weren't so far along in the process I would drop this guy but we're at the end.
I was just curious if there was a formula of what you needed to have in the bank after the down payment and closing costs.
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| Posted 6/16/14 4:15 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Re: Reserves when getting a mortgage
Posted by NYCGirl80
Our lender didn't tell us "you need $x in reserve" after you close. But it's definitely part of the calculation. I'm also pretty sure it will vary, depending on what type of loan you're approved for.
I'd talk to a mortgage specialist or broker if you have any questions or concerns. They'll be able to point you in the right direction, tell you what you qualify for, or what you need to do to qualify.
This...
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| Posted 6/16/14 4:15 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Re: Reserves when getting a mortgage
Posted by jmp1105
Thanks. I have a mortgage broker but he happens to be an idiot so I don't think he can explain it to us.
if we weren't so far along in the process I would drop this guy but we're at the end.
I was just curious if there was a formula of what you needed to have in the bank after the down payment and closing costs.
Figure, what is it, around 5% of the price of the house for closing fees, on top of what you are paying for the down payment. If you have a mortgage in process, he should have provided you with a "good faith estimate" of closing costs. We received that based on what we asked to be approved for (we knew we would be approved for a lot more than what we wanted to mortgage, so we asked for a specific $$$ for our preapproval).
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| Posted 6/16/14 4:17 PM |
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jmp1105
LIF Adolescent
Member since 12/11 553 total posts
Name:
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Re: Reserves when getting a mortgage
Posted by jessnbrian
Posted by jmp1105
Thanks. I have a mortgage broker but he happens to be an idiot so I don't think he can explain it to us.
if we weren't so far along in the process I would drop this guy but we're at the end.
I was just curious if there was a formula of what you needed to have in the bank after the down payment and closing costs.
Figure, what is it, around 5% of the price of the house for closing fees, on top of what you are paying for the down payment. If you have a mortgage in process, he should have provided you with a "good faith estimate" of closing costs. We received that based on what we asked to be approved for (we knew we would be approved for a lot more than what we wanted to mortgage, so we asked for a specific $$$ for our preapproval).
no we have the good faith estimate for closing costs. I just meant actual reserves that the bank is requiring us to have. beyond closing costs and down payment. I guess they want to see that we have a certain amount of savings as a safety net in case something happens. I was just surprised at how much they needed to see we had on top of everything else.
sorry I'm not explaining it right. I have pregnancy brain and I'm stressed. hehe
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| Posted 6/16/14 4:21 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Re: Reserves when getting a mortgage
Posted by jmp1105
Posted by jessnbrian
Posted by jmp1105
Thanks. I have a mortgage broker but he happens to be an idiot so I don't think he can explain it to us.
if we weren't so far along in the process I would drop this guy but we're at the end.
I was just curious if there was a formula of what you needed to have in the bank after the down payment and closing costs.
Figure, what is it, around 5% of the price of the house for closing fees, on top of what you are paying for the down payment. If you have a mortgage in process, he should have provided you with a "good faith estimate" of closing costs. We received that based on what we asked to be approved for (we knew we would be approved for a lot more than what we wanted to mortgage, so we asked for a specific $$$ for our preapproval).
no we have the good faith estimate for closing costs. I just meant actual reserves that the bank is requiring us to have. beyond closing costs and down payment. I guess they want to see that we have a certain amount of savings as a safety net in case something happens. I was just surprised at how much they needed to see we had on top of everything else.
sorry I'm not explaining it right. I have pregnancy brain and I'm stressed. hehe
There is no answer to that... They need to see EVERYTHING, in fact, when we were going through this almost 3 years ago, we had to change lenders because Citibank wanted letters from each and every single person who attended our wedding and gifted us money - forget about the fact that we paid for the wedding ENTIRELY ourselves, etc.
I would just make sure you have what YOU are comfortable with, I don't remember us having "much" of a cushion in the banks, we actually had a number of checks and cash waiting to be deposited (gifts from the holidays, birthdays, belated wedding gifts, etc) because we didn't want to have to try to get letters from all the people for the bank. The day we closed we deposited something like $3K between personal checks and cash.
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| Posted 6/16/14 4:32 PM |
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jmp1105
LIF Adolescent
Member since 12/11 553 total posts
Name:
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Re: Reserves when getting a mortgage
Posted by jessnbrian
Posted by jmp1105
Posted by jessnbrian
Posted by jmp1105
Thanks. I have a mortgage broker but he happens to be an idiot so I don't think he can explain it to us.
if we weren't so far along in the process I would drop this guy but we're at the end.
I was just curious if there was a formula of what you needed to have in the bank after the down payment and closing costs.
Figure, what is it, around 5% of the price of the house for closing fees, on top of what you are paying for the down payment. If you have a mortgage in process, he should have provided you with a "good faith estimate" of closing costs. We received that based on what we asked to be approved for (we knew we would be approved for a lot more than what we wanted to mortgage, so we asked for a specific $$$ for our preapproval).
no we have the good faith estimate for closing costs. I just meant actual reserves that the bank is requiring us to have. beyond closing costs and down payment. I guess they want to see that we have a certain amount of savings as a safety net in case something happens. I was just surprised at how much they needed to see we had on top of everything else.
sorry I'm not explaining it right. I have pregnancy brain and I'm stressed. hehe
There is no answer to that... They need to see EVERYTHING, in fact, when we were going through this almost 3 years ago, we had to change lenders because Citibank wanted letters from each and every single person who attended our wedding and gifted us money - forget about the fact that we paid for the wedding ENTIRELY ourselves, etc.
I would just make sure you have what YOU are comfortable with, I don't remember us having "much" of a cushion in the banks, we actually had a number of checks and cash waiting to be deposited (gifts from the holidays, birthdays, belated wedding gifts, etc) because we didn't want to have to try to get letters from all the people for the bank. The day we closed we deposited something like $3K between personal checks and cash.
Thank you. We're dealing with Citibank and they have been a pain! but we're so close to closing that I just want this to be over.
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| Posted 6/16/14 4:36 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Re: Reserves when getting a mortgage
Posted by jmp1105
Posted by jessnbrian
Posted by jmp1105
Posted by jessnbrian
Posted by jmp1105
Thanks. I have a mortgage broker but he happens to be an idiot so I don't think he can explain it to us.
if we weren't so far along in the process I would drop this guy but we're at the end.
I was just curious if there was a formula of what you needed to have in the bank after the down payment and closing costs.
Figure, what is it, around 5% of the price of the house for closing fees, on top of what you are paying for the down payment. If you have a mortgage in process, he should have provided you with a "good faith estimate" of closing costs. We received that based on what we asked to be approved for (we knew we would be approved for a lot more than what we wanted to mortgage, so we asked for a specific $$$ for our preapproval).
no we have the good faith estimate for closing costs. I just meant actual reserves that the bank is requiring us to have. beyond closing costs and down payment. I guess they want to see that we have a certain amount of savings as a safety net in case something happens. I was just surprised at how much they needed to see we had on top of everything else.
sorry I'm not explaining it right. I have pregnancy brain and I'm stressed. hehe
There is no answer to that... They need to see EVERYTHING, in fact, when we were going through this almost 3 years ago, we had to change lenders because Citibank wanted letters from each and every single person who attended our wedding and gifted us money - forget about the fact that we paid for the wedding ENTIRELY ourselves, etc.
I would just make sure you have what YOU are comfortable with, I don't remember us having "much" of a cushion in the banks, we actually had a number of checks and cash waiting to be deposited (gifts from the holidays, birthdays, belated wedding gifts, etc) because we didn't want to have to try to get letters from all the people for the bank. The day we closed we deposited something like $3K between personal checks and cash.
Thank you. We're dealing with Citibank and they have been a pain! but we're so close to closing that I just want this to be over.
I wouldn't worry about what Citibank wants you to have in the bank extra - if they see you have more $$ they might try to take more $$... Other than your salaries, I wouldn't deposit anything extra until AFTER closing. Just make sure you have what you are comfortable with.
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| Posted 6/16/14 4:45 PM |
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TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
Name:
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Re: Reserves when getting a mortgage
There is no answer to that... They need to see EVERYTHING, in fact, when we were going through this almost 3 years ago, we had to change lenders because Citibank wanted letters from each and every single person who attended our wedding and gifted us money - forget about the fact that we paid for the wedding ENTIRELY ourselves, etc.
I would just make sure you have what YOU are comfortable with, I don't remember us having "much" of a cushion in the banks, we actually had a number of checks and cash waiting to be deposited (gifts from the holidays, birthdays, belated wedding gifts, etc) because we didn't want to have to try to get letters from all the people for the bank. The day we closed we deposited something like $3K between personal checks and cash.
OMG I have NEVER heard of that. That is insanity! Do you think people would actually comply to follow through?
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| Posted 6/16/14 5:05 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Re: Reserves when getting a mortgage
Posted by Elizhf34
There is no answer to that... They need to see EVERYTHING, in fact, when we were going through this almost 3 years ago, we had to change lenders because Citibank wanted letters from each and every single person who attended our wedding and gifted us money - forget about the fact that we paid for the wedding ENTIRELY ourselves, etc.
I would just make sure you have what YOU are comfortable with, I don't remember us having "much" of a cushion in the banks, we actually had a number of checks and cash waiting to be deposited (gifts from the holidays, birthdays, belated wedding gifts, etc) because we didn't want to have to try to get letters from all the people for the bank. The day we closed we deposited something like $3K between personal checks and cash.
OMG I have NEVER heard of that. That is insanity! Do you think people would actually comply to follow through?
We had to even after the fact. There were a few big (over $500) checks that my MIL gave DH, they were reimbursement for money that he had lent her or that she had owed him, and there was an inheritance check that he was given, and we had to get letters for all of them. We refused to do that for the wedding, especially since so many of the gifts we received were from people who don't speak/write English and live in Hong Kong or China.
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| Posted 6/16/14 5:14 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Reserves when getting a mortgage
why are the quotes getting all screwy!?!?!?!?!?!?!?!?!??!?!?!?!?!?!??!?!?!?!?!
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| Posted 6/16/14 5:14 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Reserves when getting a mortgage
Posted by jessnbrian
Posted by Elizhf34
There is no answer to that... They need to see EVERYTHING, in fact, when we were going through this almost 3 years ago, we had to change lenders because Citibank wanted letters from each and every single person who attended our wedding and gifted us money - forget about the fact that we paid for the wedding ENTIRELY ourselves, etc.
I would just make sure you have what YOU are comfortable with, I don't remember us having "much" of a cushion in the banks, we actually had a number of checks and cash waiting to be deposited (gifts from the holidays, birthdays, belated wedding gifts, etc) because we didn't want to have to try to get letters from all the people for the bank. The day we closed we deposited something like $3K between personal checks and cash.
OMG I have NEVER heard of that. That is insanity! Do you think people would actually comply to follow through?
We had to even after the fact. There were a few big (over $500) checks that my MIL gave DH, they were reimbursement for money that he had lent her or that she had owed him, and there was an inheritance check that he was given, and we had to get letters for all of them. We refused to do that for the wedding, especially since so many of the gifts we received were from people who don't speak/write English and live in Hong Kong or China.
We also had to get copies of all the checks from our wedding that we deposited and at the time DH did not have direct deposit so they question each deposit even though they had the matching pay stubs. It was a nightmare
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| Posted 6/16/14 10:56 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: Reserves when getting a mortgage
Posted by jessnbrian
why are the quotes getting all screwy!?!?!?!?!?!?!?!?!??!?!?!?!?!?!??!?!?!?!?!
Weird!!
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| Posted 6/16/14 10:56 PM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Reserves when getting a mortgage
We needed to have enough in reserves to cover 2 months of our mortgage payment after closing.
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| Posted 6/17/14 9:11 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Reserves when getting a mortgage
They required six months from me. But I own two houses now (one here and one in Florida).
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| Posted 6/17/14 9:17 AM |
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KarenK122
The Journey is the Destination
Member since 5/05 4431 total posts
Name:
Karen
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Reserves when getting a mortgage
The only money we were required to have was the rest of the down payment and closing costs. We own two houses as well. We do have other monies that could be liquidated so maybe that is why they didn't request more.
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| Posted 6/17/14 10:16 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Reserves when getting a mortgage
Posted by KarenK122
The only money we were required to have was the rest of the down payment and closing costs. We own two houses as well. We do have other monies that could be liquidated so maybe that is why they didn't request more.
I think they can count 401k and investment assets as part of the "reserves". If you gave them retirement statements that can count.
For somebody that may not have any retirement accounts set up, the banks will most certainly ask for proof of reserves.
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| Posted 6/17/14 10:19 AM |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Reserves when getting a mortgage
DH and I both had substantial retirement accounts, mutual fund accounts, etc., and we provided them with copies of all of our statements, but they asked again right before closing for copies to make sure we had 2 months of mortgage payments in reserve.
I have no idea why because our down payment and closing money was in a separate savings account.
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| Posted 6/17/14 10:43 AM |
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MrsG823
Just call me Mommy.
Member since 1/11 5570 total posts
Name:
S
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Reserves when getting a mortgage
The underwriter can basically mandate what they feel is in the lender's best interest-- I had a nightmare experience with my original lender (thankfully they sold my loan to Wells Fargo). They required letters of explanation for large deposits, six months mortgage payments in the bank, the earnings statement from DH's accountant for his company and a letter from our accountant. My cousin is using a different lender and is having a similar experience bc he is self employed.
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| Posted 6/17/14 2:56 PM |
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