April 27, 2017
Unless you qualify for a VA loan or are preapproved for a
USDA loan, you’ll need a down payment of some sort. And beyond the down payment
there will also be funds needed for closing costs on the loan as well. When you
apply for a mortgage one of the first things your loan officer will want to
know is how much money you have available to close on a home loan. You can have
a little or you can have a lot but you will still have to provide evidence to
the lender at some point that you do have enough money to close. Most often
this is done simply with copies of your bank statements. But if you don’t have
enough money in a checking or savings account, there are some other resources
you might not have thought of.
A family member can provide a financial gift to you for the
necessary funds needed to close. Or, a qualified non-profit can also help out
with necessary funds. You’ll need to provide a level of documentation as it
relates to the source of funds making sure the funds are from a qualified
source and the funds will be directed to the escrow agent at the settlement
table or wired directly to your checking or savings account.
You can also apply for a grant from different agencies
dedicated to helping first time buyers. These grants can come in various forms
but basically the money is delivered with a second lien attached to the
property. A common grant helps out with additional funds in the form of a loan
that does not have to be repaid until the property is sold again or other
grants do require monthly payments but after a period of say three years the
grant is forgiven entirely.
Finally, you can sell something you own. When selling a
personal asset for cash you’ll need to provide a bit of paperwork. First, the asset
must be considered “appraisable.” This means an independent third party can
provide documentation as to its worth. A Mickey Mantle baseball card is
appraisable by a third party and would qualify as a legitimate source of funds.
If it’s appraisable and it’s yours, document the sale as well as the funds
being received and your lender can accept the proceeds.
For more information or questions about mortgage loans, please call (855) 757-8748.
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