Mortgage experts: Do people who give gifts toward closing costs HAVE to also supply bank statements to lender?
I’m being told by my loan officer that FHA requires bank statements of ANYBODY who gives me money toward closing costs. I have always been advised that a gift letter was required, or even a canceled check. I can live with these things. But bank statements of anybody who gives me money…even for Christmas?? That seems a bit ridiculous and invasive.
Please help me out because I am about $1000 short for my closing costs and I REALLY do not want my parents or siblings to have to all provide bank statements to my lender! Is this lender too harsh, or is this the times we live in? My FICO is 701
If you have been getting a little money here and a little money there for your down payment, you should have placed these funds in a bank account with your name on the account.
If you have had these funds in an account in your name for more than 90 days, then your relatives need not present bank statements or canceled checks.
The only reason for proof that you received a gift of a down payment is for several reason, drug money, borrowed money that need to be paid back thus another debt that you have to find away to pay.
If this is the case that you really borrowed the money and it is not a gift causes you to have to repay the money to your relatives thus causing your debt to income ratio to go higher, therefore you might not qualify for the house you are attempting to purchase.
If the amount you are getting from your relative does not exceed the amount of your monthly pay check you are normally ok and the lender’s underwriter might allow this.
I hope this has been of some use to you, good luck.
Do landlords pay taxes when they rent out a room in their own house?
I rent a room in my house that I live and pay a Mortgage on.. we share all common areas. she just lost her job and will be getting her rent paid by social services, will I get taxed on this money? I do not think the rent checks come to me, but I did fill out a landlord statement.
Unless you are a tax cheat you have been paying income tax on the rent all along. Of course you might be dishonest and need to be caught.
No, there is not additional tax to pay, just income.
please can someone explain to me what does tenant of record mean?
I recently went to apply for heap- which is a program to help in emergency situation with your elecric bill. The house that i live in is in my husbands name only. We are in the end process of a divorce. He does not live in the house. The department of social services told me to get a letter from my attorney stating that i reside in the home with my children only then i would be eliglble for heap. They told me to get a bank statement and copy of support check. I complied to everything and returned with all documents. When i returned they told me i was now denied because i am not tenant of record. I explained i was in the same situation last year and recieved heap. they said that i should not have recieved it and now may have to pay that amount back. i am a single mom and a full time college student and just nned a little help. i am not asking for any other services . They are saying because the mortgage is in my husbands name i am not elible. If i rented somewhere else the mortgage woul
The mortage would not be in my name, so what is the difference.
Based upon the research involving your question….it’s possible you’re living in the State of New York.
There are some very interesting, yet complicated, laws on the HEAP program for which you refer.
Below is a link that cites litigation concerning the HEAP Program.
You may wish to contact a local attorney (your divorce attorney would be able to guide you) to see if there are any options available to change your Record of Tenant from you ex-husbands name to yours!
Hope this helps you….best wishes!
Private Mortgage Insurance (PMI) Rates went up?
I just got a bill from my escrow account for shortages in the amount of $630. That was quite a change from last year when we got a $700 rebate check for overages. I wish they’d just kept it! I called and asked why i owed so much to escrow AND may payment was increasing. They told me it was because the property taxes in my town increased and they didn’t anticipate that. Ok i said i understand and got off the phone. Is it normal for taxes to rise that much? And when i was looking over my statement, i saw (and decoded) the PMI increased by $130! from last year! Is that normal? i was looking online and some sites were saying that the PMI should not increase after closing on you house. Was it hidden in fine print somewhere, that they can increase? This is insurance for the bank if we ever defaulted on our loan, but can’t they see that driving up the rates on everything, can make a person default? So much for a “fixed-rate”!
As far as I am aware, I have never seen PMI increase. However, since PMI is insurance to provide a cushion for the bank in case of default and is based on the value of your home, it would be technically possible if your home value were to have a significant decrease, i.e. Normally you are charged PMI if you paid less than 20% down so that the bank is only risking 80%. I seriously doubt that that is the case though. You say you “decoded” this information. I think what you are looking at is an increase to the escrow for taxes and insurance and the reserves or cushion the bank requires to be maintained for your escrow impound account.
In terms of your tax increase, you would normally receive a notice of the increase from your local taxing authority (the county, city or state that imposes your property taxes). In my jurisdiction (and all the neighboring jurisdictions) we are sent notices of a proposed increase to the assessment which would generate the increased tax bill a year ahead and have only a specific window of time to file an appeal. If you miss the time for appeal, you are stuck with the increase. Unfortunately it sounds like it is too late to appeal your increase–you need to be on top of notices and copies of your tax bills that are sent by your jurisdiction.
In the meantime though — ask your bank specifically what the taxes were last year and the insurance while you are at it and then ask them what they are this year and then do the math. Unfortunately the bank not only needs to make up the difference in your escrow they also need to increase to make sure there is not another shortage next year. However, the bank also usually includes a cushion and I have sometimes found that the cushion is to high. I have successfully argued with several banks to lower the escrow amount on behalf of clients when the cushion has been to high. And in my case I actually cancelled my escrow account years ago because of their funny math. I prefer to pay my own bills and not give the bank the use of my money.
If you can manage setting aside the money to pay your own taxes and insurance and your bank will allow this, consider cancelling your escrow account. If you cannot do this, then you need to be more proactive with your property tax bills/assessment notices, etc. So you aren’t taken by surprise.
I hope this information helps. Good Luck!
someone please help? any mortgage brokers here?
this is my situation…i talked to a mortgage broker a while back about getting a loan. he ran me and my husbands credit and he told me we would qualify. after checking around alittle more i decided to go with his mortgage and finamce company.he has sent me a pre-qualification letter saying we conditionally qualify for a loan up to 250,000. so we put in an offer on a house and it was acccepted. i got a commitment statement from him quoting my interest rate and he also said he needs copy of purchase agreement and w2’s and pay stubs. he wrote that once he receives this is will be sent to the lender for final approval.i don’t understand this. why does the lender have to make final approval. we have had some credit issues in the past, but he already pre-qualified us for the loan. now we are buying this house..what if something goes wrong and the loan doesn’t go through? can this happen if they already ran our credit and pre-qualified us.i’m terrified he will say we can’t get the money
Sometimes when a lender says one thing, it sounds scary to someone in your position.
When he said he has to send the info to the lender for final approval, he maybe should have phrased it better. It is the brokers job to look over the info and know if it fits the guidelines. Then the file is sent to an underwriter to verify the facts and the file that the broker submits. They put their final stamp of approval on it and all is good.
Buying a house can be scary and stressful, but it is best to just take a deep breathe and let the lender work his magic. The more you worry, the worse you feel, so don’t worry, be happy. Look at the end result of living in your new home.
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