Frequently Asked Questions

The amount depends on your purchase price, loan program, down payment, and closing expenses.

Your total cash needed may include:

• Down payment: The amount you contribute toward the purchase price.
• Closing costs: Lender and third-party expenses associated with the transaction.
• Prepaid expenses: Items such as prepaid interest or homeowners insurance.
• Initial escrow deposits: Funds collected for future property taxes or insurance when applicable.
• Cash reserves: Additional funds that certain programs may require you to have available after closing.

Eligible assistance, lender credits, or seller contributions may reduce some upfront expenses.

We’ll help estimate your cash needed based on an actual loan scenario so you can plan before submitting an offer.

Potentially, yes.

Certain conventional programs offer low-down-payment options, and eligible FHA borrowers may qualify with a 3.5% down payment.

VA and USDA programs may allow qualifying borrowers to purchase without a down payment, subject to their requirements.

However, no down payment doesn’t necessarily mean no money is needed at closing.

You may still have closing costs, prepaid expenses, or other required funds.

We’ll help you compare down-payment choices alongside the monthly payment, mortgage insurance, and overall loan costs.

Many mortgage programs permit eligible gift funds, but the source and documentation requirements vary.

For example, some programs may allow gift funds from qualifying family members or other acceptable donors.

Lenders may require:

• A signed gift letter
• Information about the donor
• Documentation of the funds
• Evidence showing how the money was transferred

Certain programs also have restrictions on who can provide the gift or how the funds may be used.

If you’re expecting gift money, tell your loan officer before the transfer occurs.

We can explain the applicable requirements so the funds are documented properly and don’t create unnecessary questions later.

Possibly. Eligible funds from retirement accounts, brokerage accounts, or other investments may be used for down payments, closing costs, or reserves under certain programs.

Some programs may also consider qualifying assets when calculating income.

However, the way funds are accessed matters.

For example, withdrawing retirement funds may have tax consequences or penalties, while borrowing against an account can create additional financial obligations.

We’ll review how the lender may treat the assets for mortgage purposes, but you should also discuss potential tax or investment consequences with the appropriate financial professional.

Bank statements help lenders verify that you have sufficient acceptable funds for the mortgage transaction.

They may be used to confirm:

• Available down-payment funds
• Money needed for closing
• Required cash reserves
• Certain income or deposit information
• The source of funds when additional verification is required

Lenders may also ask about significant deposits or transfers that aren’t clearly explained by the information already provided.

We’ll help you understand which statements are needed and what the lender is trying to verify.

If questions come up, we’ll explain the supporting documentation that may be required rather than leaving you to guess.

Large deposits and transfers aren’t automatically prohibited during the mortgage process, but they may require additional documentation.

For example, if a substantial amount appears in your bank account shortly before closing, the lender may need to determine where the funds came from.

Depending on the circumstances, you may be asked for:

• Statements showing the money leaving and entering the accounts
• Gift documentation
• Records of an eligible asset sale
• Business or employment-related records
• Other evidence supporting the source of funds

If you’re already pre-approved or under contract, tell us about significant deposits or transfers as early as possible.

We can help you understand the documentation requirements before they create delays.

Cash reserves are eligible funds that remain available after you’ve paid the required down payment and closing expenses.

Some lenders require reserves as an additional measure of financial stability.

For example, a program may require reserves equal to a specified number of months of housing payments.

Requirements can vary based on:

• Loan program
• Property occupancy
• Credit and financial profile
• Number of financed properties
• Loan amount or other transaction characteristics

Not every mortgage requires the same reserve amount, and some may not require reserves at all.

We’ll explain whether reserves apply to your loan and which assets may be counted.