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DO LENDERS WANT TO SEE CASH TO CLOSE BEFORE ISSUING PRE-APPROVAL
Do mortgage lenders look for enough cash to cover preapproval amount of the cost needed for the down payment and closing costs of the home in contract?
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This discussion was modified 6 months ago by
Gustan Cho.
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This discussion was modified 6 months ago by
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1 Reply
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Certainly, a sufficient amount of available cash to cover closing costs and a down payment for the house being bought is usually required by loan providers. During preapproval, your financial statements will be reviewed by lenders to confirm that you possess enough money for this purpose. The lender will also verify whether these funds are seasoned (i.e., they have been in your account for some time – typically not less than 60 days) so as not to consider them as borrowed or from a sudden source.