Consumption and Real Estate
will my home loan application be denied if i have hardly any money in my savings account?
Question : will my home loan application be denied if i have hardly any money in my savings account?
my credit score is almost 700, i was pre-approved for a home loan, i found a house i liked, i made an offer which has been accepted, just started escrow account with $ 4000.00 deposited, my income is $ 110/yr. with hardly any money in my savings account because of a very bad business investment will this hurt my chances of getting the loan, even with my salary?
home loan application
Best answer:
Answer by Princess
If you had a lot of money in savings, you wouldnt need the loan… they just want to know that you can make your payments. If you have good history, and a good salary with plenty left after outgoings, you’ll be fine.
-
-
#3 written by vegasb2k 1 year ago
Most loan programs look at “Reserves” that you have in a savings, checking, 401(k) type of account. Some programs require that you have 2,3 or 6 months of reserves to qualify, but not all loan programs.
Also, the programs that require these reserves can do exceptions with other compensating factors, like high credit scores and job stability and income. Which it looks like you have.
You loan officer should let you know what is required, if anything. As long as your debt-to-income is within range and your credit scores are good, you should be in great shape.
Enjoy your new home,
Greg S.
-
#4 written by kate 1 year ago
Loans are based on your ability to repay , & whatever they prequalified you for, they believe you can pay.
The low savings, will however , leave you without the 20% down so you will probably be paying at least $ 200 a month more for PMI. Check with your lender tho, for actual PMI costs. Your score may also mean you pay a higher interest rate.
It might be wiser to wait a year, get your 20% down and save a lot of $ $ on the PMI & possibly a lower rate as your credit improves. - Comment Feed for this Post
You have a good credit score and a healthy income. My friend, it looks like you more than qualify to buy that home you want. Qualification is not your problem. I have twenty lenders that would bend over backwards to give you a home loan and they wouldn’t even ask you for a down payment
The only thing that concerns me is my whether you’ve determined what your long term financial goals are and if you’ve thought about building some reserves just in case life throws you a curve ball.
There are a too many options for me to list them all here, but you can email me if you’d like some more details. the main thing I want to get across to you is that you don’t have to worry about qualifying for a loan, you just have to make sure that you’re putting yourself in a good situation and that you are getting the best deal.