Terms And Phrases To Learn Before House Hunting

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Reserves

You’ll hear this term at least once and possibly twice depending on what type of home you’re looking at. Your mortgage lender will want to know how many reserves you have, and in their eyes, that’s the amount of cash you will have left over after putting the down payment on your home and paying for closing costs (something you can learn about here). In addition, if you’re looking at a common interest development property, you’ll want to investigate how many reserves the homeowner’s association has. That essentially means how much cash they’ve stockpiled to handle large projects, should they come up.