| loan officer question?

loan officer question?

All4Christ asked:


how come the bank wantts to see funds in your account when you say you make 7,000 a month? and they expect you to have 12,000 in the account! the loan officer asked how much i make per month befor taxes. i said 7,000. now the bank expects me to have 12,000 in my account for them to varify if i can afford the house we want to buy. this is crazy. why so much? is this right? should my loan officer fight to lower the amount? what should i do?

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5 Responses to “loan officer question?”

  1. A.C.Girl on May 23rd, 2009 12:54 pm

    THey may expect you to have that available for closing costs.

  2. Jenyfer C on May 26th, 2009 4:01 am

    The bank is extending an offer of cash to you. THey would like to have an idea of your “cash habits” to make sure you will pay them back.

  3. marvin on May 27th, 2009 11:15 am

    The $12,000 is for the down payment and other cost. Or perhaps, the money would be to cover incidentals needed upon moving into a new house. They don’t want you to have to run up extra debt furnishing the house after you buy it. Basically, reasons like that.

    If you don’t understand something going on in the process of buying a house make sure you ask for an explanation. Don’t wait to be blindsided by something you didn’t understand.

  4. JAMIE M on May 29th, 2009 9:07 pm

    Alot of banks figure is you make $7,000.00 a month you should be able to save some $$ too. They look it like “is that too much to ask, that a potential borrower who we are going to lend a few hundred thousand dollars too, has a two months of income in a bank account?” Really it isnt too much to ask, you should at least have that much saved either in a 401k or whatever. On a purchase or a high LTV refi 95 out of 100 banks usually want to see either 2 months reserves ( PITI=principle, interest, taxes, and insurance) or double the income in reserves. Good luck!

  5. mistypa12000 on May 29th, 2009 9:22 pm

    They like for you to have a cash reserve in your saving so if something happens to your job you will still be secure finacially until you find another job. If you don’t agree with your current loan company look around for another, you don’t have to stay with someone you feel like is taking advantage of you. The loan officer should also tell you up front a estimate of the amount you will need at closeing, and you usually will have to pay your first years worth of insurance. Good Luck!