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I just need to have it in the bank. So it still puts a financial burden on me, as a borrower. It makes it harder to qualify for the loan. Why Do Lenders Require Them. Cash-reserve requirements are intended to provide a safety cushion in case the borrower suffers a financial setback (such as the loss of a job).
With extra money in the bank, the homeowner would be able to cover his or her mortgage payments for a few months.