Its part of the less-risk mentality adopted in the wake of the housing crash. For borrowers, it means one more hoop to jump through when qualifying for a mortgage. And for a rising number of home buyers, it can be a painful lesson in mortgage rejection. What are Cash Reserves. The term cash reserves refers to extra money the borrower has in the bank on closing day.
These funds go above and beyond what is needed for the down payment and closing costs. Some online payday loans saskatchewan have cash-reserve requirements on top of all their other mortgage criteria (credit scores, debt ratios, etc. Its not always mentioned up front either.
Late Payments Hurt Your Credit Score. Please be aware that missing a payment or making a late payment can negatively impact your credit score. To protect yourself and your credit history, make sure you only accept loan terms that you can afford to repay. If you cannot make a payment on time, you should contact your lender immediately and discuss how to handle late payments.
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