When applying for a mortgage, in most cases you will need to document your assets. This is done by providing scanned copies of your bank statements or by allowing your lender access to view your banking balances and recent activity online by providing your login credentials through a secure encrypted portal. The reason for this request is to make sure you can repay your loan on time and comfortably and have sufficient cash for any required down payment. Often times, there will be an additional requirements for reserves. Depending on your specific loan program, your lender may require 2,3,6,12 months or even longer of readily accessible reserves. Reserves are basically your payment amount, principal, interest, taxes, insurance and homeowner’s association dues multiplied by the number of months required. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
