Texas Lone Star Lending Video
Think You Have Enough Saved? Watch This Before You Get Pre-Approved
Buying a home takes more than just a down payment. In this video, we break down what lenders look for when reviewing your available funds — including closing costs, reserves, and why having money left over after closing matters. If you're planning to get pre-approved, understanding this can help you avoid surprises and feel more confident moving forward.
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Read the transcript
Let’s take a closer look at available funds — because there’s more to it than just your down payment.
Most buyers know they need money for closing costs, but those costs include more than just fees. You’re also prepaying certain expenses at closing — things like your first year of homeowner’s insurance, interest for the month you close, and sometimes money to set up your escrow account for taxes and insurance.
Depending on your loan program and credit profile, you may also need what lenders call reserves. These are funds you have but don’t use for the purchase. We usually measure them in months of your housing payment. For example, six months of reserves means you have enough savings — separate from your closing funds — to cover six months of payments.
And beyond what the lender requires, it’s important to think about your own comfort level. Moving in with no cash left can be stressful if you need repairs, appliances, or unexpected expenses.
The goal is to go into homeownership not just able to close — but financially prepared for what comes next.
And remember — it’s always okay to ask. We’re here to help you get home.