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 be repaid and have been gifted for your purchase. They will provide the funds to you in the form of a certified check that you can bring to closing or if the lender prefers, will deposit into your account. Lastly, a printout or statement from the donor’s account showing the funds withdraw are required to show the funds were provided from their account.
Learn more: Asset Related Questions
- Can I use cash deposits?
- Can I take a cash advance on my credit card?
- Can I deposit checks from sources other than my payroll check into my account?
- What about transfers into my account from another account?
- What do I do if I have already received money in my account?
- What other things does the lender look for on account statements?
- When do I need to have my down payment?
- What is required for gift documentation?
- 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?
- I don’t have enough money in my account for my earnest money. Can I write a check from my credit card account?
- Will my earnest money count toward my down payment?
- Do I always get my earnest money back if I don’t purchase the home?
- What other expenses will I have to incur in addition to what is on the closing cost estimates provided by my loan originator?