Requirements for assets differ,
depending on the lender/loan program you choose.

Many loan programs require a certain amount of cash and/or retirement funds on hand after close, called reserves. For this reason, it is important that your lender know about your assets. You can aggregate this information on the Borrowers Information worksheet in the Shopping Toolkit.

Your lender will need to know:
  • Liquid assets: cash, savings, stocks, bonds and mutual funds
  • IRA, Keogh, 401k, pension, or other retirement savings

If you are a homebuyer also list:

  • Net proceeds from sale of current residence
  • Gift money that you will be receiving
  • Any business funds, loans or bridge financing you will be using

The most common asset issues are seasoning, and reserves. Seasoned assets are funds that were deposited into your account before the two most recent statements on that account were generated. Generally, if you are purchasing a home, a lender will want you to have at least 5% of the purchase price in seasoned funds, although there are certain programs which allow exceptions to this rule.

Reserves are the funds you will have after the transaction is closed, whether it is a purchase or refinance. Depending on the lender and the loan program, reserve requirements will vary. Providing accurate information about your assets will enable your lender to alert you to any potential problems. If you are buying a home, please also refer to the section Down payment and reserves.