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Buyers Need to Know About Overlays

Here’s what buyers need to know about new overlays in the lending world.

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Shifts are happening right now in the lending and financing industry that buyers should know. If you don’t know about these changes, it can cost you money, time, and cause anxiety.

Lenders are asking for overlays now, which are additional requirements to close your loan or on a home. One of the extra requirements we’ve been seeing is that you have to have anywhere from three to six months of mortgage payments in the bank that they can verify when you close.


You never know how that connection could benefit you down the road.


Another overlay is asking two questions at closing: Are you still employed, and are you employed long term? You must answer honestly, and if you reply “no” to either one of these questions, you may not close on the house. At that point, you’ve spent money on the appraisal, credit report, home inspection, and several other things. The sellers are either in the process of moving out or already have, and you’re likely ready to move, but you can’t because of overlays.

Again, some of these new overlays come up at the closing table, so ask your lender what they’ll require in overlays before you get to that stage in the process.

If you have questions about overlays or need further information, reach out to us via phone or email at We’d be happy to help you.

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