When it comes to a mortgage, often one of the single largest expenses you’ll have in your life, many homebuyers, especially first-timers, will look to use assistance from parents or other family members to help with what can be a large lump down payment sum. This is a natural outlet in many cases, as saving up the cash for a down payment is never easy. <\/p>\n
At Mortgage Investors Group, we’re here to help when it comes to these kinds of basic gifts. Let’s look at the steps you need to take with your mortgage company and other parties to ensure there are no issues here. <\/p>\n
Talk to a Lender <\/p>\n
For starters, speak to your mortgage lender about the programs that allow parental assistance. Both FHA loans and conventional loans generally allow these kinds of gifts, with similar rules, but there might be a few differences in basic areas like allowable funds sources, time the money needs to spend in the bank, and little details like this. <\/p>\n
Gift is Provided <\/p>\n
Once you’ve ensured everything is above board here, your parent or other family member provides this down payment gift. It’s best to get the money into your bank account as soon as possible, as underwriters will want to see evidence of this. Specific requirements for deposit verification will vary between mortgage lenders, and possibly between loan types. <\/p>\n
Gift Letter is Provided <\/p>\n
Along with the actual funds, your family member must also provide proof that these funds are truly a gift. This comes in the form of a letter that states they do not expect any formal repayment, and this is not simply a short-term loan that’s attempting to use a loophole. <\/p>\n
Underwriter Verifies Funds <\/p>\n
The next step involves a third-party underwriter, one who will be present to check on various details of the loan. They’ll look at various financial factors to ensure that you meet all the requirements of the type of loan being used – this will include any gifts for the down payment. <\/p>\n
Deal is Closed <\/p>\n
While your gifting process is taking place, the rest of the mortgage process will continue as it usually would. The home will be appraised, the underwriter will ensure all parties are above board, and signed documents will be sent back to the lender to finalize the mortgage. <\/p>\n
For more on down payment gifts, or to learn about any of our other mortgage services, speak to the pros at Mortgage Investors Group today. <\/p>\n","protected":false},"excerpt":{"rendered":"
When it comes to a mortgage, often one of the single largest expenses you’ll have in your life, many homebuyers, especially first-timers, will look to use assistance from parents or other family members to help with what can be a large lump down payment sum. This is a natural outlet in many cases, as saving … Continue reading Steps to Follow For Family Down Payment Gifts<\/span>