Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE.” This week, we answer the question: When it comes to my mortgage, what are cash reserves?
Essentially, cash reserves are the money you have leftover in the bank after paying your down-payment and closing costs. Cash reserves are important because they represent your strength as a borrower!
It shows that you can continue to make payments should something disrupt your income, and shows that you can keep your new home in good working repair.
