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Mortgage glossary
Reserves
Eligible funds remaining after the money needed for closing is accounted for. Lenders may measure reserves as a number of months of housing payments. The amount and acceptable sources depend on the program and transaction.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.