Closing Costs Funds Verification? Are you kidding???

[Archangels]

Hope you all can help.

Currently in the final stages of closing on a home with a VA loan through NFCU. 

The loan processor today told me how much funds I need to have in my account in order to cover the closing costs to close. But she also said she needs to know where the funds are coming from, and if it is a gift or transfer from someone else's account they need to fill out a letter? She needs a "paper trail" from the funds coming into the account to close?

How Am I suppose to do this? I have one personal check and a transfer from a family member to complete the closing costs. What is the best way to go about this? And what kind of paper trail or verification do they need if I deposit a personal check from a friend or family member? Anything helps thanks!

[Jnbmom]

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@Archangels wrote:

Hope you all can help.

Currently in the final stages of closing on a home with a VA loan through NFCU. 

The loan processor today told me how much funds I need to have in my account in order to cover the closing costs to close. But she also said she needs to know where the funds are coming from, and if it is a gift or transfer from someone else's account they need to fill out a letter? She needs a "paper trail" from the funds coming into the account to close?

How Am I suppose to do this? I have one personal check and a transfer from a family member to complete the closing costs. What is the best way to go about this? And what kind of paper trail or verification do they need if I deposit a personal check from a friend or family member? Anything helps thanks!

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No they are not kidding this is pretty standard with any mortgage process. You need to explain who and where the personal check came from, and if it is a gift from friend/family member. They usually will ask for a letter from the friend/relative stating it was a gift and not a loan.

[Archangels]

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@Jnbmom wrote:

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@Archangels wrote:

Hope you all can help.

Currently in the final stages of closing on a home with a VA loan through NFCU. 

The loan processor today told me how much funds I need to have in my account in order to cover the closing costs to close. But she also said she needs to know where the funds are coming from, and if it is a gift or transfer from someone else's account they need to fill out a letter? She needs a "paper trail" from the funds coming into the account to close?

How Am I suppose to do this? I have one personal check and a transfer from a family member to complete the closing costs. What is the best way to go about this? And what kind of paper trail or verification do they need if I deposit a personal check from a friend or family member? Anything helps thanks!

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No they are not kidding this is pretty standard with any mortgage process. You need to explain who and where the personal check came from, and if it is a gift from friend/family member. They usually will ask for a letter from the friend/relative stating it was a gift and not a loan.

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Ok, do they need something like bank statements from those people if it is a gift besides the letter? Or is the letter sufficent?

[Anonymous]

Years ago I got a gift for a downpayment on my first home. All the lender required was that the giver write a short letter, dated and signed stating the amount of money given and something like "this money is a gift and is not required to be repaid." I do not think they will need the person's bank information since they're not applying for anything, simply giving you a gift. As long as the name on the check matches the name and signature on the letter, I think you will be OK. Good luck to you! 

[Jnbmom]

@Archangels 

No a dated letter stating this was given as a "gift" should be sufficient and they should just sign it.

[Archangels]

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@Jnbmom wrote:

@Archangels 

No a dated letter stating this was given as a "gift" should be sufficient and they should just sign it.

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Why would the loan prossesor say,  after a transfer from my mom's account they would need to gain acesses to get (Same bank)" all the documentation necessary" ?

[jules0580]

I do not know if NFCU does it or if it depends how much of the cost they are covering or how large the gift is but I do know that a friend of mine received a gift from her mother and her mother had to provide bank statements showing that she also had not taken a loan out to give the gift

[jules0580]

Oh I just realized you said transfer. If it was a personal check I don't think they would require it but I know if you have transfers they will sometimes then want the statement of the account the transfer came from

[Archangels]

Update! 

The bank says anyone making a, "donation/gift" to cover closing costs or down payments. Requires a gift letter and last bank statement. They need to verify that the funds have been in there some time 30-60 days prior to closing. 

[CreditInspired]

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@Archangels wrote:

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@Jnbmom wrote:

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@Archangels wrote:

Hope you all can help.

Currently in the final stages of closing on a home with a VA loan through NFCU. 

The loan processor today told me how much funds I need to have in my account in order to cover the closing costs to close. But she also said she needs to know where the funds are coming from, and if it is a gift or transfer from someone else's account they need to fill out a letter? She needs a "paper trail" from the funds coming into the account to close?

How Am I suppose to do this? I have one personal check and a transfer from a family member to complete the closing costs. What is the best way to go about this? And what kind of paper trail or verification do they need if I deposit a personal check from a friend or family member? Anything helps thanks!

---

No they are not kidding this is pretty standard with any mortgage process. You need to explain who and where the personal check came from, and if it is a gift from friend/family member. They usually will ask for a letter from the friend/relative stating it was a gift and not a loan.

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Ok, do they need something like bank statements from those people if it is a gift besides the letter? Or is the letter sufficent?

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Yes, it is a possibility that they may ask for proof of funds from family member to ensure that the family member actually had the funds seasoned in their account.