Provide Fully Executed Savings Plan

[Mike_B03]

We got our loan approval today for a new construction home (construction to start next month and to finish in June) but there are a few stips still to fulfil prior to closing, one being:

• Provide a fully executed savings plan for the closing costs and 
• Document the savings plan with 2 months bank statements

We didn't have the funds in the bank when we signed the sales contract and told them we'll be saving up the money to have at closing, so that's why they are asking for this.

Has anyone ever done one of these before? What exactly are they looking for?

[Mike_B03]

Any advice?

[tooleman694]

What I think they are after is your monthly budget.. They want to see you with deposible income..

So if you need to save 15k in 6 months, show you are saving 2,500 a month..

[Mike_B03]

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@tooleman694 wrote:

What I think they are after is your monthly budget.. They want to see you with deposible income..

So if you need to save 15k in 6 months, show you are saving 2,500 a month..

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Ah ok, so something like:

Income $4000

- Rent $1000

- Car payment $500

- Utilities $300

- Food $200

- Misc $500

Remaining $1500

Like that? It's a little different for us because we are both self employed, so monthly income isn't a fixed amount, but I guess we can use an average (or the amount used on the loan app for monthly income). 

And then for the bank statement requirement? I guess they want to see two statements showing the balance in the account growing the X amount claimed as savings? So if this month shows $5000, next month statement would show $6500 and the following statement $8000? 

It's odd because we are already on a monthly payment plan for the deposit. We've made 3 payments, have 2 left, and when it comes to closing, we'll only owe another $3,000. 

[tooleman694]

Yeah that sounds about right.

I would ask the LO to confirm.

[Mike_B03]

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@tooleman694 wrote:

Yeah that sounds about right.

I would ask the LO to confirm.

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Yea, I'm waiting on their call back. They were out of the office yesterday. I'm trying to patient and not call them again (left a message yesterday) but I can probably only wait about another hour or so before I crack haha.

[Mike_B03]

Well that was a lot simpler than what was going on in my head, I need to relax sometimes.

Talked to the loan processor just now and they don't need anything written or outlined on paper, they just need to see bank statements showing the monthly deposits that we have already been making and will continue to make. Prior to closing, they will need a final bank statement showing we have the remainder due at closing, which will be $3500 at that time. Easy peasy.

Looks like we're all set...can't believe all that is over (at least for the next 5 months until it's time to submit updated docs)!