Moving Costs and Loan Readiness: How Bankers Can Help

Borrowers spend months preparing for their down payment and closing costs. Yet one major expense can still throw off their mortgage readiness: The actual act of moving. When clients underestimate relocation costs they may fall short on required reserves or struggle to cover final payments. This directly affects how if you’re able to help them— by that point, it might be too late to reallocate budget or funds to cover these necessary costs.

At NationalExpress Move, our ongoing work with real estate and mortgage professionals has shown us that you, as a mortgage banker, are in a prime position to help borrowers budget for the entire process… not just the loan. Factoring in moving costs early can protect their qualification status and prevent stressful surprises. With the right guidance you can keep deals on track and ensure borrowers start homeownership in a strong financial position.

Why Mortgage Reserves Matter and Where Moving Costs Fit In

Mortgage reserves are more than a lender formality. They are a cushion that protects the borrower’s ability to pay the mortgage after closing. They also strengthen the lender’s risk profile.

• For conventional loans, borrowers often need at least two months of PITIA (principal, interest, taxes, insurance and any dues) in reserves for primary residences. 

• Second homes and investment properties may require six months or more. 

• FHA and VA loans usually have no reserve requirement for primary residences, but exceptions exist for multi-unit properties or when rental income is part of the qualification.

If a borrower uses too much of their liquid assets on moving their reserves can drop below what the lender requires. That can trigger re-underwriting, delay closing or even cause a deal to fall apart. A borrower might think moving expenses are separate from mortgage readiness. In reality, those funds are often counted in the same financial picture.

Your role is to help them see how these pieces connect so they make better decisions. Bringing up this topic early builds trust and reduces the risk of last-minute surprises.

The Moving Expenses Borrowers Don’t Always See Coming

Your clients will usually budget for the big-ticket items like hiring movers or renting a truck. What they may not expect are the smaller charges that accumulate quickly and can add thousands to the total.

Here are common cost categories and typical price ranges for banker reference:

Beyond these categories borrowers may also encounter fees for elevator reservations, parking permits, fuel, tolls, pet transport or purchasing new furniture and appliances. These hidden costs are what most borrowers forget to plan for and where they are most likely to eat into reserves.

Guiding Clients to Balance Moving and Mortgage Readiness

As a mortgage banker, while you can’t plan the move itself, you still can highlight how certain spending decisions affect loan approval. This starts with explaining “seasoned assets.”

Funds for reserves should ideally be in the borrower’s account for at least 60 days before closing. If they make a large moving payment right before closing, the underwriter may question the drop in available reserves or ask for additional documentation. That can add stress and slow down the process.

Encourage borrowers to map out their total cash needs in one place:

• Down payment

• Closing costs

• Reserve requirements

• Estimated moving costs

When all four numbers are visible it is easier for the borrower to see where they may be overextended. You can also suggest they look at worst-case scenarios. For example, if their move runs $1,000 over budget what will that do to their reserves? Will they still meet the minimum? By running these scenarios in advance, they are less likely to be caught off guard.

Practical Budgeting Strategies to Share with Borrowers

When moving expenses are part of the conversation early borrowers have more options to save and prepare. Share these actionable strategies to keep them financially ready for closing:

• Start the moving budget discussion at least 60–90 days before closing so clients can plan without feeling rushed.

• Recommend opening a separate account or sub-account for moving funds so reserves stay untouched.

• Provide a list of vetted movers, storage companies and other vendors, disclosing any partnerships or referral arrangements.

• Encourage clients to add a 10–20% buffer to their moving budget for unexpected costs.

• Remind them that timing matters. Large moving payments made just before closing can raise red flags with underwriting.

• Suggest they gather multiple quotes for services and explore ways to save such as decluttering before the move or reusing boxes and supplies.

By building these habits into their planning borrowers are more likely to close on time with their reserves intact.

Helping Clients Close With Confidence

When moving costs are overlooked, borrowers can find themselves short on funds right when they need them most. That can create unnecessary stress, complicate underwriting, and even delay closing. By addressing moving expenses early in the process, mortgage bankers can help clients protect their reserves, meet lender requirements and keep the transaction on track. 

NationalExpress Move understands the unique challenges borrowers face when balancing a home purchase with a major relocation. We’re proud to offer partnerships that enhance what mortgage bankers are able to do for their clients, from start to finish.  This level of preparation builds trust, reduces last-minute surprise and helps ensure a smooth path to the closing table. 

Now that you’ve read this piece, you’re that much more prepared to help your clients as they prepare to borrow and sign for their next home. Keep reading in our dedicated article about what it would be like to work with NationalExpress Move.