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stacykat

Is this normal?

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I'm so nervous because my lender just called because on my August bank statement it shows a $4000 deposit and they wanted an explanation. I told them the truth, that half was my money I had tucked away and the rest was from SO's mom as a gift towards the house. He said he will put it down as being a gift and send it off to the underwriter, if there is a problem then I have to have SO's mom sign a gift note or something, which would be no problem. Is this normally done in the mortgage loan process? Could this be detrimental to my loan application? I'm having an uneasy feeling now and any help would be greatly appreciated.

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It's normal.

They are just seeing if your income is true and where the money is from. They do stuff like that to see if any downpayment is a loan they don't know about.

It's just fund verification. All they want is explanations, the same thing you and I would want if we were loaning money to a stranger!!

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I would go to the effort and have her write you a "gift Letter", They are very simple, just mentioning that this is a gift that she is making to help you purchase the home, and never needs to be paid back.

Then you are ready if/when the UW wants to see the gift letter.

The lender just wants to make sure that the seller is not helping you purchase the home "off the record".

Charles

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Ok, thanks so much! I was so nervous about this. The $4000 didn't make or break my down payment anyway, if I didn't have it I would still be ok. Hopefully they will take that into consideration also, after all, half of it was mine in the first place. I'll try to get the gift letter from SO's mom today just in case! Thanks!

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A gift letter is what I used for my mortgage.

However, the money actually came from a 5k loan that I got a few weeks prior to closing.

I told the loan officer that I had a wad of cash that came from various members of families. At first the loan officer thought of using it as "mattress money" but then said it would be a lot easier for everybody if I claimed it was a gift.

I tried to make it sound that it came from a variety of family members so that my story was a bit more believable. However, the loan officer said that just to deposit all this money into one relatives bank account and then get that relative to fill out the gift letter and then take it to his or her bank.

The loan officer didn't ask too many questions at all where this money came from and I got the impression that she didn't care if it came from a brown paper bag as long as I filled out the paperwork properly.

I handed this wad of money to my dad and he deposited into his bank account. He took the gift letter to his bankand they filled out what was needed. I then took the gift letter to the loan officer and that was all that was needed.

At first, I was worried on how to explain how I came to this was of cash but as soon as the paperwork was finished, it was never brought up again...

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There are some lenders that dont require funds to be "seasoned" that are used for down payment or for "Recurring Closing Costs" (Prepaid interest/insurance/taxes).

The processor is just required (or the lender's UW staff does it) to check a few days before closing to see if the funds in the checking account/savings account have enough to cover those amounts.

Reading between the lines, I think that is what happened here.

The seasoning issue is becoming less of an issue lately, as the lenders left a "loophole" in the regulations with the GIft letter. I think that the gift letter is just a way to make the loan more marketable.

Charles

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