FinancingHomebuying Glossary
Cash Reserves
Savings left over after closing that lenders like to see as a financial safety cushion.
In plain English
Cash reserves are liquid savings you have available after covering your down payment and closing costs — usually measured in months of future mortgage payments. Some loan programs require a minimum amount of reserves to approve your loan.
Why it matters
Beyond satisfying a lender, healthy cash reserves protect you from an unexpected repair or income disruption right after you become a homeowner.
Where you'll run into it
Guides and tools on TheBuyingPath that cover cash reserves in context.
Related terms
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