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Are your checking and savings accounts just as important to a lender as your credit score when purchasing a home?
Yes and no. One of the factors affecting your scenario would be assets and "seasoning", meaning how long have you had the money you have. Being able to document a lot of assets and lots of seasoning can many times compensate for a little bit lower credit score. And assets doesn't necessarily mean money in the bank - it can also mean retirement funds, stocks, mutual funds, cash value life insurance, etc.. Most lenders are looking for somewhere between 3 and 6 months of cash reserves (meaning 3-6 months of mortgage principal, interest, taxes and insurance) in the bank for at least a couple of months, after the downpayment and closing costs on the loan. The most important factor in qualifying for a mortgage is typically credit score, as this demonstrates how likely a borrower is to repay a debt as agreed, but having a lot of money in the bank can sometimes overcome a little lower qualifying credit score.
What else can I help you with?
Do you know if banks will still give high interest rates on savings accounts compared to a regular checking account?
Most savings accounts hold little to no interest rate currently. They are basically the same as a checking account. If you are looking for higher yield interest, consider purchasing a CD.
Why does a savings account make a better investment than a checking accounts?
Savings accounts earn interest.
Why are saving accounts not subject to the fed reserve requirements?
savings accounts are not subject to the Fed's reserve requirements because savings accounts are not as liquid as checking accounts.
What types of savings accounts does HSBC offer?
HSBC savings accounts are competitive with savings accounts at other banks. HSBC offers other services such as retirement planning, CDs, checking accounts and credit cards.
Do checks come out of checking or savings accounts?
Checks typically come out of checking accounts. Checking accounts are specifically designed for everyday transactions like writing checks, making debit card purchases, and withdrawing cash. Savings accounts, on the other hand, are meant for storing money and earning interest over time.
Do you know if banks will still give high interest rates on savings accounts compared to a regular checking account?
Most savings accounts hold little to no interest rate currently. They are basically the same as a checking account. If you are looking for higher yield interest, consider purchasing a CD.
Does Second Chance Checking offer savings as well as checking accounts?
"As far as I can tell, second chance checking does not offer any savings accounts. They strictly provide checking accounts to individuals with less that perfect credit histories."
Why does a savings account make a better investment than a checking accounts?
Savings accounts earn interest.
Are there more fees in a checking account compared to a savings account?
Most checking accounts have no fees. Savings account has more fees than checking accounts because of the higher interest yields available in a savings account.
What are the various types of bank accounts?
* Savings Account/Checking Account * Current Account * Fixed/Time Deposits * Recurring Deposits
What are the disadvantages of using checking accounts?
Many checking accounts do not offer interest on the money in your savings account. This is a disadvantage because the money you put in a savings account will collect interest, where a checking account will not.
Why are saving accounts not subject to the fed reserve requirements?
savings accounts are not subject to the Fed's reserve requirements because savings accounts are not as liquid as checking accounts.
Which has a higher interest rate checking or saving?
Generally a savings account pays more interest, but there are some checking accounts that offer rates that are very competitive to savings accounts.
Do mortgage companies check for savings and checking accounts?
Yes they do.
Can I open a savings account if I have a judgment against me?
Yes, you can open a savings account if a bank allows you to. Usually banks are not as strict with savings accounts as they are with checking accounts.
What types of savings accounts does HSBC offer?
HSBC savings accounts are competitive with savings accounts at other banks. HSBC offers other services such as retirement planning, CDs, checking accounts and credit cards.
How do savings accounts work?
Savings accounts are bank accounts that accumulate interest. You make deposits and withdraws at your bank and unlike checking accounts you cannot link a debit card or checks to the account. Most banks allow you to transfer money from your savings to your checking account and vice versa if you have both.
