Mortgage Commitment Letter -- Received !!!!

[Oyiwaa]

Hello,

Thanks for all your support.  I did receive the mortgage committment letter this morning, and I am glad it all is coming together now.  

However as expected it came with some (Prior to Docs) conditions, and I have a question about two of them:

1.  My wife is not on the mortgage so she will be gifting some of her money to be used for closing.   The underwriter is aksing for "evidence of donor ability and receipt of gift funds by the borrower....".  I can show the receipt of gift funds through a cashier's check for example from my wife.  But what constitutes "evidence of donor ability?

2.  The underwritter wants a LOE regarding a negative balance on one of my bank accounts:  $-8.00 (in Feb) & ($-0.29) in March.  These occured because the accounts were overdrawn.  For both of monthly service fees.  I'm not sure how I didn't anticipate these and I'm sure it would look weird if I am unable to explain this.  How can I explain these negative balances - what should I say in this letter?

Thanks very much - Oy

[dollar_bill]

I woudl simply ask your contact with the lender  (LO, whomever it is) the very same questions you just asked here. That's a big part of their job, to facilitate the process along. Perfectly normal questions, and that way you get the answer straight from the horses mouth. 

[ShanetheMortgageMan]

1. Her bank statement showing the funds in it

2. The explanation you just wrote

[Oyiwaa]

Thanks very much ...Shane...MortgageMan:

Does it matter the source of the funds in my wife's account?  - - I ask because my LO is interested in the source of finds in MY account -- so will she have to do the same with respect to my wife's account?

BTW:  I provided the LOE, stating the facts, and it was accepted ... so most of the conditions are now satisfied ...

thanks - -  Oy