What Are Mortgage “Reserves?”
August 28th, 2008 By Peter G. Miller
When you apply for a mortgage lenders are interested in your credit, debts, and income. They are also interested in the amount of cash you have on hand.
Many loan programs require that borrowers have one or two months of cash on hand in addition to the cash required for a down payment and closing costs. This requirement can generally be satisfied by money in a savings account, checking account, money market account, pension account from which you can make withdrawals or obtain a loan, etc.
For details and specifics, please speak with lenders.
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