Earlier in Series, On of How to Avoid delays in your closing
on a Home Loan, we mentioned just how important your credit is for when
you’re applying for a home loan. Aside from your FICO score, your assets are a
huge part to your loan approval. You must prove that you have the funds
to close and all funds must be sourced prior to issuing out a loan
approval.
For Residential
home loans you need 2 months of recent bank statements and for Commercial loans
we would need 3 months of recent bank statements.
For Example… If you apply in the month of October 2014
NuHome would need August 2014 - September 2014 bank statements for a
Residential Home Loan. Now, if you’re getting a Commercial Loan then you would
need the bank statements for July 2014 – September 2014.
Once we have received your
bank statements we will look through them thoroughly. Please be aware that any
cash deposits over $100.00 MUST be sourced.
Gifted Funds
A “gift” is allowed only
when it is given by an immediate family member. It must be considered a gift and NOT a loan
which will be requested to be paid back. If you received a gift from a family
member you must have a gift letter stating: who gave you the gift, when it came
to your account, and the donor must be willing to provide their bank statement.
The Donors bank statement will prove that the donor is in a good financial
position to gift you those funds. This is what we call the “Gift Test”. You may
scratch your head and say... ”Hmm. well why is their bank statement relevant?”
The Gift Test
Here’s why… Let’s say Uncle
Sam gives you a gift of $7,000.00 for closing cost but he only has $7,300 in
his account. There is no way he is any position to give you that gift. Based on
the ability to give a “Gift Test”, which is listed below, would fail because
this bank statement shows that he would be left with no money for himself.
Bank
of America
|
10/01/14 Cash Deposit
|
$700.00
|
|
10/05/14 Company Check Deposit
|
$3,000.00
|
|
10/15/14 Company Check Deposit
|
$4,000.00
|
|
10/16/14 Company Check Bonus Check
|
$300.00
|
|
10/17/14 Cash Withdrawal
|
$7,000.00
|
Current Balance $300.00
Now let’s talk about Cash
Deposits… If you or your donor has bank statements that have cash deposits of
$100.00 or more they must be sourced. If any cash deposits over $100.00 cannot
be sourced that amount will be backed out of total funds to close. Cash
deposits may be sourced by invoices or other donor’s gift letter.
For instance... If Uncle Sam
provides us with a bank statement, like the one that is listed below, and says
that a family member gave him that cash to deposit on October 1, 2014, then we
would need a gift letter from that family member along with a Gift Test.
Everything must add up and must be sourced.
Bank
of America
|
10/01/14 Cash Deposit
|
$700.00
|
|
10/05/14 Company Check Deposit
|
$3,000.00
|
|
10/15/14 Company Check Deposit
|
$4,000.00
|
|
10/16/14 Company Check Bonus Check
|
$300.00
|
|
10/17/14 Cash Withdrawal
|
$7,000.00
|
Current Balance $300.00
After we
have received all gift letters and source all cash, we will be able to issue
your loan approval. This final bank statement will need to be an original copy
or print out and signed copy from a bank representative. By us addressing these
issues ahead of time, we will make the loan process a lot faster once it goes
to underwriting. Keep in mind that if we do not receive the assets and gift letters,
then there will definitely be a delay in your loan process.
For more information on this subject please contact us by
phone 713-373-0345. Frank Marta NMLS# 245813 | 835196
