topic Re: Someone please clarify Reserves... in Mortgage Loans

Someone please clarify Reserves...

inquring_minds — Wed, 20 Aug 2008 00:00:59 GMT

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

Re: Someone please clarify Reserves...

MattH — Wed, 20 Aug 2008 01:41:46 GMT

@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

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

Re: Someone please clarify Reserves...

DallasLoanGuy — Wed, 20 Aug 2008 04:04:38 GMT

what matt said

Re: Someone please clarify Reserves...

BrianB_The_Loan_Professor — Wed, 20 Aug 2008 04:15:24 GMT

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

Re: Someone please clarify Reserves...

Anonymous — Wed, 20 Aug 2008 15:47:52 GMT

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

Re: Someone please clarify Reserves...

Anonymous — Wed, 20 Aug 2008 15:57:07 GMT

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

Re: Someone please clarify Reserves...

Anonymous — Wed, 20 Aug 2008 20:10:16 GMT

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.

Re: Someone please clarify Reserves...

Anonymous — Wed, 20 Aug 2008 20:11:49 GMT

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.