You have to have some money in the bank in order to get approved for a home loan. This is true even if you are getting a no down payment loan. You should have enough money in the bank to cover two months’ worth of house payments – including principle, interest, taxes and insurance (known as PITI). These reserves are particularly important when applying for 100% financing. There are also closing costs involved in purchasing a home. You may be able to negotiate your purchase so the seller pays some or all of your closing costs. If the seller is not paying the closing costs then you will need to have enough money to pay closing costs in addition to your reserves mentioned above. The reserves and the closing costs are not your down payment. The down payment is separate from these requirements.

If you do not have a checking account and a savings account you need to open them. The funds for reserves need to be verified by bank statements. So you need to have bank accounts.

The truth is that saving money is very difficult for most Americans these days. There are tremendous amounts of pressure on you to spend money and go into debt. Those are exactly what you should not do if you want to buy a home. The problem is most of us have already fallen into the rut of living paycheck to paycheck and are not saving. We make enough money to be able to save, but we aren’t. The American Home Buyer Service goes right to the heart of this problem. We have a proven system that gets you saving money right away and our friendly, caring coaches are there to ensure you stick to it. You will not be able to succeed at handling collection accounts, judgments, tax liens or anything else if you cannot save money.

The American Home Buyer Service helps you to change your financial habits so you are controlling your money and spending and making progress toward your goal of home ownership.

Get the help you need to start saving today. Call 866-554-9906 or click here.