Buying a house can involve a lot of upfront expenses.
It can be hard to save up enough cash to cover inspections, closing costs, and down payments all on your own, especially while paying other expenses such as rent, student loans, and car payments. It’s not uncommon for loved ones to offer to help ease the financial burden, but before you accept cash to help buy your home, you’re going to need a gift letter.
Gift letters are documents stating that someone, often a parent or other family member, is giving a mortgage applicant money to help them purchase a home. The gift letter will typically include who is giving you the money, who is receiving the money, the amount being gifted, and a statement declaring that the sum is being given with no expectation of the money being repaid.
The gift letter shows your mortgage lender where that money came from and lets them know that the gifter will not be able to claim they are a lender, and therefore cannot issue a lien on the property.
If you are planning to use gifted funds to help purchase your next home, make sure your lender is aware sooner, rather than later.
Have additional Cheyenne real estate questions? Please connect with us today at 307-635-0303 or visit us online at cheyennehomestore.com.
