Bank Statements and applying for mortgage

[Anonymous]

I have been snowballing medical debt and credit cards over the last few months to be ready to buy a home in April. We are almost completley free of credit card debt and medical debt. With snowballing, our bank account has kept a very small balance. Will this matter when we buy a home? We make combined around $100,000. Our DTI is 26-30%. We have money to spend just not while I am snowballing all of our debt to prepare for the home. 

[GirlMelanie89]

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@Kyliemarie85888 wrote:

I have been snowballing medical debt and credit cards over the last few months to be ready to buy a home in April. We are almost completley free of credit card debt and medical debt. With snowballing, our bank account has kept a very small balance. Will this matter when we buy a home? We make combined around $100,000. Our DTI is 26-30%. We have money to spend just not while I am snowballing all of our debt to prepare for the home. 

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It shouldnt be a problem. LOs encourage having as little debt as possible. So you should be ok. Continue snowballing and goodluck on buying a home!! But can we get that DTI down a little bit more? The lower the better. But you are definitely on the right track!!!!

[Anonymous]

Your bank account will need to show that you have the ability to meet your cash to close amount (down payment and closing costs) before you can get an approval. Many lenders won't even issue a pre-approval without seeing adequate funds.

[GirlMelanie89]

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@Anonymous wrote:

Your bank account will need to show that you have the ability to meet your cash to close amount (down payment and closing costs) before you can get an approval. Many lenders won't even issue a pre-approval without seeing adequate funds.

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Wow! I didnt know that! Even if youre using down payment assistance?

[Anonymous]

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@GirlMelanie89 wrote:

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@Anonymous wrote:

Your bank account will need to show that you have the ability to meet your cash to close amount (down payment and closing costs) before you can get an approval. Many lenders won't even issue a pre-approval without seeing adequate funds.

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Wow! I didnt know that! Even if youre using down payment assistance?

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If you are using down payment assistance, you don't need to come up with that cash. We just need to verify the cash amount you actually need to close.

[DallasLoanGuy]

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@GirlMelanie89 wrote:

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@Anonymous wrote:

Your bank account will need to show that you have the ability to meet your cash to close amount (down payment and closing costs) before you can get an approval. Many lenders won't even issue a pre-approval without seeing adequate funds.

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Wow! I didnt know that! Even if youre using down payment assistance?

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those down payment assistance deals are income based......  i think you might be over the income limits

[GirlMelanie89]

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@DallasLoanGuy wrote:

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@GirlMelanie89 wrote:

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@Anonymous wrote:

Your bank account will need to show that you have the ability to meet your cash to close amount (down payment and closing costs) before you can get an approval. Many lenders won't even issue a pre-approval without seeing adequate funds.

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Wow! I didnt know that! Even if youre using down payment assistance?

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those down payment assistance deals are income based......  i think you might be over the income limits

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In KY, I can still qualify for DPA up to $60K income or something close. They give up to $6500 at a 5.5% interest rate. Unfortunately, I exceed the DPA for up to $4500 at 1% interest rate by $2000!!! Im so sad because that would have been awesome! Lol

[GirlMelanie89]

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@Anonymous wrote:

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@GirlMelanie89 wrote:

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@Anonymous wrote:

Your bank account will need to show that you have the ability to meet your cash to close amount (down payment and closing costs) before you can get an approval. Many lenders won't even issue a pre-approval without seeing adequate funds.

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Wow! I didnt know that! Even if youre using down payment assistance?

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If you are using down payment assistance, you don't need to come up with that cash. We just need to verify the cash amount you actually need to close.

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So if I received DPA, and the seller agreed to pay closing costs, I would still need to show I have the closing costs in the bank?

[Anonymous]

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@GirlMelanie89 wrote:

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@Anonymous wrote:

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@GirlMelanie89 wrote:

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@Anonymous wrote:

Your bank account will need to show that you have the ability to meet your cash to close amount (down payment and closing costs) before you can get an approval. Many lenders won't even issue a pre-approval without seeing adequate funds.

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Wow! I didnt know that! Even if youre using down payment assistance?

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If you are using down payment assistance, you don't need to come up with that cash. We just need to verify the cash amount you actually need to close.

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So if I received DPA, and the seller agreed to pay closing costs, I would still need to show I have the closing costs in the bank?

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Nope.

[GirlMelanie89]

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@Anonymous wrote:

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@GirlMelanie89 wrote:

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@Anonymous wrote:

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@GirlMelanie89 wrote:

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@Anonymous wrote:

Your bank account will need to show that you have the ability to meet your cash to close amount (down payment and closing costs) before you can get an approval. Many lenders won't even issue a pre-approval without seeing adequate funds.

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Wow! I didnt know that! Even if youre using down payment assistance?

---

If you are using down payment assistance, you don't need to come up with that cash. We just need to verify the cash amount you actually need to close.

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So if I received DPA, and the seller agreed to pay closing costs, I would still need to show I have the closing costs in the bank?

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Nope.

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Wow! Lol. If only it ended up working out like that, that would be awesome!!!!