PLEASE notify me if you plan to receive gift funds. We have forms that will need to be filled out and documentation is required from both gift giver and gift receiver. NEVER USE/RECEIVE CASH AS A GIFT. Lenders are very particular about sourcing the funds and cash is extremely difficult to source. All funds for a home purchase need to be seasoned or sourced. Traditional bank statements are required at the beginning of each loan submittal, so ask for help whenever you have these types of deposits if you do not want to have to provide proof. Less paperwork is just easier. If that is not possible, let me know right away, I will help with this process and make it easier.
DO NOT obtain and/or deposit sums of money (ESPECIALLY CASH) anything other than your employment income before or during your transaction. All Lender guidelines require documentation as to the source of these funds (i.e., copy of bonus check, copy of tax refund, copy of insurance settlement, gift letter with copy of check and deposit slips, gift giver’s statement, etc.). Cash is not allowed in a purchase transaction. Seasoning or Sourcing is required. Seasoned means sitting in a Bank account for a month or two so that the funds are available and in the beginning balance of the bank statement. Sourcing means that any large deposit (or multiple smaller deposits adding up to a large amount of funds) is questioned and then you will need to explain and provide copies of the deposits checks to prove where the funds came from – automatic deposits from tax refunds are not questioned, as it is obvious where those funds came from if indicated on the bank statement.