Woodard Mortgage Group


Gift Money or Your Own? A Tip for the Mortgage Process

If you’ve been waiting it out to get pre-qualified to buy a new home, think of 2013 as your last chance to act.

Seriously – sure, you can do it next year. Or the year after. Right now though, interest rates are expected to remain volatile for the new few months and into early 2014 – so right now you can still get some great rates and lock in a lower rate with some of our great loan programs like Lock and Shop.

In our area, property values are climbing creating another good reason to buy – if have been on the fence about making the move.

With good credit, persistence and some shopping skills, you can still snag phenomenal deals this year.

What if you don’t have the down payment money for a new home on your own? You may be able to accept gifts from others for this purpose, but be careful – there are rules about such things.

Earnest Money Rules.

Make sure the EMD check and DD checks come from someone who will definitely be part of the mortgage. If the check comes from someone not on the mortgage, it will have to be a gift to the borrower.

Gifts are not allowed on all programs, so check with Dan to be sure you can accept gifts before the check is written.

Some programs have strict requirements for documents a gift donor must provide. For example, the FHA requires a copy of the gift donors bank statement showing they have funds for the gift from a legitimate source. Sometimes the gift donor will be unwilling to provide such paperwork.

Have questions? Contact Dan today at 919-676-1111.

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