If your credit card statement will cut AFTER closing, I would say it is generally safe to charge your every day expenses on credit card. When does your credit card statements report? I would only use the cards that report after closing to the credit bureaus as they may pull your credit right before closing and you do not want the lender to see a higher credit card balance.
Since you are still 2 weeks out, I would be very cautious about dropping your savings below $4000. As UWs can always (and many times do) come back at the last minute to check reserves just how they often rerun credit at the last minute.
I am closing next week and all my UW asked for was a copy of my 401K check and updated statements that show it was deposited into savings as I took a residential loan out on my 401K. I have to use a small amount of it possibly for trash haul before closing and a small amount for moving after closing. My LO said I did not need a certain amount of reserves due to my credit score. But I have about $6000 in savings and my yearly bonus from my job of $6000 will arrive late this month, early March.
I guess my other question is, why can't you buy groceries and pay your normal bills using your paychecks? Savings is supposed to be reserved for emergencies and other things that fall outside your normal budget. I charge all my everyday expenses on credit cards each month for the rewards and I pay in full every month so I never carry a balance. I guess I'm concerned about the additional debt you will have for using your credit cards for expenses not covered by your paychecks. Will the mortgage on the new house be cheaper or more expensive?
Lastly to reiterate, I would be very cautious about lowering your savings below the min required and charging expenses on cards that will report the higher balance to the credit bureaus before closing because you are still two full weeks away from closing, which means there is still a ton of time left for UWs to ask for additional stuff. Don't be fooled, there have been many that were denied right before closing due to changes happening on their accounts and credit reports since preapproval that were viewed very negatively by the lender.
Since you are still 2 weeks out, I would be very cautious about dropping your savings below $4000. As UWs can always (and many times do) come back at the last minute to check reserves just how they often rerun credit at the last minute.
I am closing next week and all my UW asked for was a copy of my 401K check and updated statements that show it was deposited into savings as I took a residential loan out on my 401K. I have to use a small amount of it possibly for trash haul before closing and a small amount for moving after closing. My LO said I did not need a certain amount of reserves due to my credit score. But I have about $6000 in savings and my yearly bonus from my job of $6000 will arrive late this month, early March.
I guess my other question is, why can't you buy groceries and pay your normal bills using your paychecks? Savings is supposed to be reserved for emergencies and other things that fall outside your normal budget. I charge all my everyday expenses on credit cards each month for the rewards and I pay in full every month so I never carry a balance. I guess I'm concerned about the additional debt you will have for using your credit cards for expenses not covered by your paychecks. Will the mortgage on the new house be cheaper or more expensive?
Lastly to reiterate, I would be very cautious about lowering your savings below the min required and charging expenses on cards that will report the higher balance to the credit bureaus before closing because you are still two full weeks away from closing, which means there is still a ton of time left for UWs to ask for additional stuff. Don't be fooled, there have been many that were denied right before closing due to changes happening on their accounts and credit reports since preapproval that were viewed very negatively by the lender.
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Good points, I'll try to only use cards I know won't report a higher balance until after we close on the 15th.
These are the assets they are counting:
- $500 earnest money
- $500 in savings account
- $1600 in 401k (yeah, i know...not very much, but I'm only 30)
- $4400 in checking account with latest statement I sent to processor
After I sent in the latest checking statement 2 days ago, my balance went up to $4900 in checking. But then we had to pay the cable bill, cell phone bill, rent @ $850, groceries, etc and we're down to only $3300 in checking.
We get paid again the day before closing and I don't anticipate getting any tax refund checks until March 
Our CC balances have only gone up slightly, we didn't go out and buy a bunch of new appliances or anything...that'll come AFTER closing 
What really frustrates us is that we can't get anyone to tell us EXACTLY how much money we need to keep in checking to be safe. I think our loan officer might have said $4000 but honestly can't remember...and now whenever I ask him or the processor how much is enough, they ignore my emails.
Could I be worried about nothing? I know most of us freak out prior to closing and I'm really feeling it now. I'm ready to pull my hair out.
I'm at that point as well. I was supposed to close Jan 31st but that fell through as one of the UWs came back with more document requests when there wasn't supposed to be anymore so now my file is back in final review. I am going through our local housing authority for a loan program. So once the CHFA UW approves, it goes back to UAMC for the last approval needed to close! We plan to have everything packed up and ready to move on Feb 6th...which will hopefully be our closing date...worst case, it will be Feb 8th.
My LO ignores my emails for a period of time sometimes as well so I would give him a call directly to get an answer. You want to thread lightly when it comes to spending and reserves.
I would also consider moving your reserves to savings and only keep your paycheck plus some amount of cushion above that which comfortably covers your bills and other expenses so you truly know how much you have to spend to keep you from spending savings. It is ideal for your savings account to have more money than your checking account. I would also start a recurring transfer to move some amount of your paycheck every week to savings so it continues to grow.
My LO ignores my emails for a period of time sometimes as well so I would give him a call directly to get an answer. You want to thread lightly when it comes to spending and reserves.
I would also consider moving your reserves to savings and only keep your paycheck plus some amount of cushion above that which comfortably covers your bills and other expenses so you truly know how much you have to spend to keep you from spending savings. It is ideal for your savings account to have more money than your checking account. I would also start a recurring transfer to move some amount of your paycheck every week to savings so it continues to grow.
I'm not going to even try to estimate that as that is dangerous. I would find out your required reserves from your loan officer and have him put it in writing so you have it, should things go awry.
I have dealt with both and Brokers are much more about customer service than LOs. We wanted the incentives on our home and had to transfer to a LO. I know the Broker I was working with before would have had our loan closed by now.
I have dealt with both and Brokers are much more about customer service than LOs. We wanted the incentives on our home and had to transfer to a LO. I know the Broker I was working with before would have had our loan closed by now.