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i talked to a few lenders that said I need a paper trail of where the money comes from. I got pre aproved for a USDA loan, my parents are gifting me $1000 and the lender said I could deposit the money as cash..I'm confused..is this right? Do the lenders determine if you need a paper trail? Why would he tell me it doesn't matter? I don't want problems down the line if we find a house and no money trail...
Also, they are not on the appoved lenders list on the USDA website, should I not go with them and find someone else? I've talked to numerous companies but nobody ever calls me back.
Agree with pp...I would find another lender that is familar with USDA loans. This one clearly isn't
USDA does require a "paper trail" in the form of an RD 3550-2 form. Your parents will fill out this form to document the $1000 gift and verify that it does not have to be repaid.
As far as your lender not being an approved USDA lender, I'd contact your state's USDA agency representative about that. The list is here:
@wendlan wrote:
What is said at the preapproval stage can suddenly change in underwriting. .don't put a cash deposit..use a check than can be tracked back to a bank account. .and make sure the giver will sign a gift letter and show their bank acct to the underwriter
Any LO that would mislead a borrower in the beginning is not worth doing business with...it will create issues during your mortgage process. The LO can't change the lenders u/w process. He can persuade in some cases to have an exception made, but not something that is contrary to guidelines.
Go with the LO that tells you the real deal rather than the feel good answer in the beginning (like wendlan so eloquently put it above).
Will he still need a paper trail if he gets the money now but doesn't apply for a mortgage for a few months? It kinda sounds like that is his plan. Either way I would echo the comments about perhaps looking into other lenders