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Sep 28, 2017 - 34 minute read

Requirements for a cash advance

It makes it harder to requirements for a cash advance for the loan. Why Do Lenders Require Them. Cash-reserve requirements are intended to provide a safety cushion in case the borrower suffers a financial setback (such as the loss of a job). With extra money in the bank, the homeowner would be able to cover his or her mortgage payments for a few months.

So its basically a foreclosure-avoidance strategy. But theres a major flaw with the concept of cash reserves. In theory, the borrower could spend that extra money two days after closing. It wouldnt be the smartest move, but theres really nothing to prevent it from happening.

Requirements for a cash advance

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Requirements for a cash advance

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