Gift Funds For Down Payment

If you are receiving down payment funds in the form of a gift, your lender will provide you the Gift Letter and you will have to complete and sign them (signed by the person providing the gift as well as you, the borrower).  They will also need a copy of the ACTUAL GIFT CHECK, and proof of the deposit to your bank account.  Once funds are credited to your bank account, you will need to provide a transaction history from the date of your last bank statement through the date of the deposited gift funds showing the available balance as well as well as copies of all documents used to provide the funds (a copy of the check, front and back after deposited and cancelled.  If the money is being wired, you will need a copy of the outgoing wire, the confirmation of receipt of the incoming wire and a current statement showing the available funds in the receiving account).

Preparing For Mortgage Approval

What You Need To Be Prepared For Your Mortgage Application

Remember,  when working with me, your real estate transactions will be relaxing and enjoyable.  So, don’t panic, I am hear to help you, call me!

Work with a trusted and organized lender, avoid internet only (.com) lenders.  Sellers will want to know that your financing is solid with a reputable lender.  Also, realize that some of the big banks are notorious for not closing on time.  In multiple offer situations it is an advantage to have pre-approval from a local lender that has a good reputation with real estate brokers. Having a trusted lender backing you can be the reason your offer was picked over a competing offer.

In order to be approved for a mortgage in a timely manner you will need to have the following documentation:

  • Copy of your Driver’s license
  • Current pay stubs showing 30 consecutive days
  • Last two months of your most recent checking account statements
  • Most recent two years of your W-2’s
  • Last 2 months of your most recent account statements for investments/brokerage/IRA or 401K
  • Any current mortgage statements and home insurance policies (primary residence, vacation properties and any investment property)
  • Most recent two years of tax returns
  • Most recent two years of business tax returns if you are self-employed
  • Confirm the account that you will holds the funds for cash to close.  Any gift funds?  Will you be cashing in stock shares for the down payment?  If so, it is best to have those funds deposited BEFORE you present the offer.  Otherwise you are required to disclose that the funds are not readily available when you present your offer to a seller.  In a competitive market this is just one more thing that will make your offer less attractive.  So, if possible, have the down payment funds in your account before writing an offer.

Keep in mind that if you supplied these documents for pre-approval and time has passed since you have found a property to present an offer on, you will need to provide updated documentation to your lender.