Gifted Down Payment Question...

[KeithW]

My wife and I had planned to use our savings for the down payment on our house, but the LO strongly recommended we get the funds gifted to us instead, claiming that it was much simpler. My mother actually offered to gift us the money, but I have a couple of questions.

1. When we first got Pre-Approval on the house, we put down earnest money with the title company. Then the other day when we submitted the final paperwork, before going to underwriting, they said they would return the earnest money, and that I needed to bring the title company the full down payment, to be put in escrow. Is this unusual? We are two weeks from the closing date.

2. They want 30 days of statements from my mothers checking account, which she will be using to gift us the money. Her checking account has thousands of dollars from business related activites, flowing through it, but she generally doesn't keep much, if anything in it. So will it look funny if she transfers money into it, and then gifts it to us?

[Anonymous]

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@KeithW wrote:

They want 30 days of statements from my mothers checking account, which she will be using to gift us the money. Her checking account has thousands of dollars from business related activites, flowing through it, but she generally doesn't keep much, if anything in it. So will it look funny if she transfers money into it, and then gifts it to us?

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The funds will need to be paper-trailed from the original source. If she transferred money from a different account, the lender will likely ask for those statements as well.

[DallasLoanGuy]

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@KeithW wrote:

My wife and I had planned to use our savings for the down payment on our house, but the LO strongly recommended we get the funds gifted to us instead, claiming that it was much simpler. My mother actually offered to gift us the money, but I have a couple of questions.

1. When we first got Pre-Approval on the house, we put down earnest money with the title company. Then the other day when we submitted the final paperwork, before going to underwriting, they said they would return the earnest money, and that I needed to bring the title company the full down payment, to be put in escrow. Is this unusual? We are two weeks from the closing date.  never heard of this 

2. They want 30 days of statements from my mothers checking account, which she will be using to gift us the money. Her checking account has thousands of dollars from business related activites, flowing through it, but she generally doesn't keep much, if anything in it. So will it look funny if she transfers money into it, and then gifts it to us? if she gifts from an account, those funds need to be papertrailed. we just have to see the money in an account. if she transfers from one account into another.... they might want statements on both accounts. 

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