No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hey guys,
Quick question per loan originator I was told that gift funds can be wired to the title company days before closing which is a way that UW wont request bank statements from gifter?
Doesn't sound right.
How are they going to source the funds? How can you get the CTC without showing you have enough in your bank account to fund the closing?
Sourcing funds is a federal requirment. If it was ok to wire the funds in and not provide the source of the funds, then everyone would do it (like they did in the heyday before the meltdown). I think your LO is incorrect. Speak directly to the u/w or have your LO show you in writing where you don't have to source gift money.
As an aside, when we collect EMD here and deposit them into the title company, the lender asks for proof of deposit from the title company and for a copy of the canceled check from the buyer to show the source of funds.
Sounds like your LO is not giving you correct info.
I have reserves of my own but the gifted funds show a recent deposit in his bank statements so in order to avoid the UW wanting 1 months of bank statements the gifter can show proof that he wired the money to the title company like a week in advance with a signed letter stating that it is gifted with no repayment thats what I was exactly told from my LO.
We had gift funds wired directly and all they required was a receipt of the transaction. It is my understanding that they don't need to source gifted funds.
Sounds similar to what I was told from my LO did the donor show bank statements at all? And did they wire to the closing company or to your checking account ?
Wired directly to closing company for the sake of simplicity. No statements were required, just receipts.
So it basically varies for UW to UW... Did you do the wire the same day or days before?The reason why I ask because the funds are "mattress money " so I guess the easier way to to give the funds to my daughter for her to "gift" it to me and proof or receipt
@amg550 wrote:So it basically varies for UW to UW... Did you do the wire the same day or days before?The reason why I ask because the funds are "mattress money " so I guess the easier way to to give the funds to my daughter for her to "gift" it to me and proof or receipt
This is why the money has to be verified. IMO you will have issues in u/w.