I am in the process of closing on a house I have 2k tied up already. I have sent multiple bank statements that have been requested of me and recently it looks like they were able to view my account and see I did not have the required minimum in there anymore. So I told my LO of course I don't, you advised me to get an inspection, good faith deposit, appraisal and purchase home owners insurance which is about 2k so obviously I have spent some of money for house, why would you advise me to spend the money if youre going to be checking my accounts again? I am still waiting on his reply.. does anyone have any advice? my closing date on contract is 11/15. Thank you in advance.
Ok I don't want to sound lame but the obvious answer is to get more money... But isn't that what we all want.
Was this money you were suppose to put down? Or just reserve money?
Look at it from your lenders perspective. If you don't have the money qualify for morgatage then they may not be able to lend especially if this is a conventional secondary market loan. Their hands are tied.
Yeah, sorry, but what they are looking for is adequate reserves AFTER paying the costs of buying the house.
Even getting more money doesn't necessarily cover you; they want to see the money in your accounts for 60 days usually.
Do you have anything in other accounts they haven't seen yet? A 401(k) maybe? They can use some percentage (I think 50%) of a 401(k) to demonstrate adequate reserves.
'Reserve' money is just that, it is for reserves. It is not for appraisals, inspections, earnest money, homeowner's insurance or anything else. It is money the bank has deemed you must have in reserve should the unexpected happen.
The bank is going to be checking your accounts and credit repeatedly throughout the home-buying process. Anything that deviates from your initial financial 'picture' will be heavily examined and may throw your loan into jeopardy.
Replace the money.
It becomes 'yours' again (to do with as you wish) upon close.
Chalk this up to a learning experience!
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