How much assets or cash in bank do I need to show on my mortgage application.?

Asked by Parag, Jersey City, NJ Sat Apr 11, 2009

If I have just enough to cover the closing costs and downpayment, is that enough, or do I need to show more? If I have investments overseas, can I show that?

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Ruth Bonapace, , 07030
Sat Apr 11, 2009
For most mortgage loans covering single family homes or condos, sufficient assets to cover the down payment and closing costs are enough.

The overseas investments are usually not relevant unless you plan to use them. Retirement accounts are also taken into consideration in loans where you need reserves. The reason why I am using qualifying words like "usually" is because there are many kinds of borrower profiles. For example, healthy reserves can sometimes offset a high debt ratio because it demonstrates an ability to save money. When buying a multifamily, cash reserves are required to show you have a safety net in the event of a vacancy. Etc.
Ruth Bonapace
mortgage specialist
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Ed Fallon, M…, , West Chester, PA
Sat Apr 11, 2009
It depends. Generally speaking, the more the better. Mortgage lenders typically like to see enough for the downpayment, closing costs, and a reserve equal to at least two mortgage payments, but some programs require more and some require less. Showing more liquid assets may not be required, but it may be a compensating factor that can make up for a deficiency in some other area.
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