How to Handle Gift Money When Buying a House
So you're buying a home, and you need to receive gift money
to help with your down payment and other items. There is a
specific process which you must be sure to follow.
Otherwise, there could be major problems at the end of the
First, you should only get gift money from family, close
relatives, your employer, or people whom you can prove a
close relationship exists. Ok, here's the process:
Have the donor write you a personal check.
Deposit the check into your personal account.
After the check is available, print out a transaction history which shows the money available in your account.
Have the donor go online and print out the image of the cancelled check.
Have the donor provide a copy of their bank statement to show that they already had the money in their account in order to provide the gift to you.
Sign the gift letter, which we will provide you with.
Provide all of that information to us as soon as possible.
Verifying the funds needed to close on a purchase is often the most frustrating part of the transaction. So be sure to do all of this sooner than later, and as always, call us with questions.