Someone please clarify Reserves...

[inquring_minds]

Is the the amount that must be in savings, investment, etc. or is this the amount that must be bought to settlement?

Message Edited by inquring_minds on 08-19-2008 05:00 PM

[MattH]

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@inquring_minds wrote:

Is the the amount that must be in savings, investment, etc. or is this the amount that must be bought to settlement?

Message Edited by inquring_minds on 08-19-2008 05:00 PM

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Reserves are the remaining liquid assets the buyer will have AFTER closing.

[DallasLoanGuy]

what matt said

[BrianB_The_Loan_Professor]

Think Emergency funds - they help lenders feel safer in case of job loss etc

[Anonymous]

right - think of them as your back up cushion _- And they must be liquid usually

[Anonymous]

Does a 403(b) (non profit retirement fund) count as reserves? jv

[Anonymous]

If you are able to acces the funds in the 403b, even if you have a penalty and/or have to pay tax  on it, it is allowed to be counted as reserves. Pretty much anything liquid, except for matress money.

[Anonymous]

You may want to find out if your reserves have to be seasoned, most of the time they do for at least 60 days. Of course, 403b money would most likely already be seasoned.