Mortgage-Verifying Your Down Payment

If you are a first time homebuyer, your upcoming down payment to buy a home needs to be verified. It has been seen that family members are regularly a good source when needing money and, making a down payment to buy a home in South Florida coming from a family member are generally well accepted. You also need to know that money coming as a gift from a friend may not be accepted unless you can prove a very close relationship of several years. Receiving money from a family member as a gift means that your lender will require a gift letter and for which he must provide a form to fill. This form is called the gift letter to buy a home and it must state the relationship between the parties (mother, father, brothers or any other), it must include their full names, the gift amount and the address of the purchased home. The gift letter must be clear enough about these funds by stating that the money comes from a gift and that is not required to pay it back. With all that understood, you and your family member must sign the form. It is very important for you to know that many lenders may ask for some additional evidence pertained to the ability of your family member to make the gift. Your money giver will have to present a bank statement copy to prove the money availability. And, you will have to make a copy of the pertinent check as well as getting a copy of the deposit receipt at the time of depositing the money into your escrow. When buying a home in Florida, your down payment must be verified even though it comes from a gift. The gift letter to buy a home is a requirement.