Faq - Asset Related Questions
When do I need to have my down payment?
Ideally, when you write your offer, your funds should be ready. Funds could be in the form of a gift, the sale of another property, or money you have already saved. We will document these with a gift letter, the contract for the property sale, and bank statements to show you have funds ready for […]
What is required for gift documentation?
Your loan originator will prepare and assist you in getting the documentation for a gift that is acceptable for the lender. Do not prepare your own gift letters as they may not be approved by the lender. Generally, for gift documentation, the donor will sign a gift letter indicating the funds do not need to […]
My agent is writing my offer this afternoon and I forgot my checkbook. Can my girlfriend (or mom or brother or friend) write the earnest money check for me and I can pay them back?
No. This is not recommended because it likely is not an acceptable source of your down payment. Ask your agent to let you bring your own check later for the offer to be submitted.
I don’t have enough money in my account for my earnest money. Can I write a check from my credit card account?
No. This is never an acceptable source for the earnest money.
Will my earnest money count toward my down payment?
Yes. You will receive credit for the earnest money to be applied toward your down payment.
Do I always get my earnest money back if I don’t purchase the home?
Usually but not always. You would get the money back if you cancel the contract by the dues dates for various options you have built into the contract. Generally, these are for the condition of the property, acceptable title, appraised value, and loan approval. If all these conditions dates are passed, and you change your […]