Best approach to getting a good loan

[Irvinecommuter]

Hi everyone:

Wife and I are getting close to getting a home and are saving up for a 10% down payment.  We have good income and save a significant portion away every month.  However, we will be getting a substantial portion of the down payment from family.  My question is what are the do's and don't's at this point. 

We will have enough downpayment by end of January to have the 10% and since we are buying new, we will have about 6 months of time to bank more money before we have initiate the loan.

Thanks!

 

[irvinehomeowner]

Paging SGIP...

Are you getting the 10% down loan from the builder's in-house lender? I didn't think there were many 10% down programs out there.

 

[homer_simpson]

Hi everyone:

Wife and I are getting close to getting a home and are saving up for a 10% down payment.  We have good income and save a significant portion away every month.  However, we will be getting a substantial portion of the down payment from family.  My question is what are the do's and don't's at this point. 

We will have enough downpayment by end of January to have the 10% and since we are buying new, we will have about 6 months of time to bank more money before we have initiate the loan.

Thanks!

I believe the lenders/banks would like to see the money in your bank account seasoned for a few months.  There's also a "gift letter" if I recall correctly that would explain the money given by family.

10%?? Should atleast save up 20% to avoid PMI.

 

[Irvinecommuter]

Paging SGIP...

Are you getting the 10% down loan from the builder's in-house lender? I didn't think there were many 10% down programs out there.

A lot of lenders have 10% now...the builder's lender definitely and I have even spoken with Chase about the 10%.

I believe the lenders/banks would like to see the money in your bank account seasoned for a few months.  There's also a "gift letter" if I recall correctly that would explain the money given by family.

10%?? Should atleast save up 20% to avoid PMI.

The loan would be a 80/10/10...to avoid jumbo and PMI.

 

[qwerty]

to avoid the gift letter thing, if possible, i would have your family give you the down payment money three months before you get pre-approved by the builders lender so they dont see the big deposit coming in and and ask you to do the gift letter thing. also, i would keep the down payment money in a separate bank account, otherwise be prepared to provide documentation on all deposits > $500 (other than your direct deposit payroll)

 

[MovingOnUp]

Cashcall unsecured loan.

 

[Irvinecommuter]

to avoid the gift letter thing, if possible, i would have your family give you the down payment money three months before you get pre-approved by the builders lender so they dont see the big deposit coming in and and ask you to do the gift letter thing. also, i would keep the down payment money in a separate bank account, otherwise be prepared to provide documentation on all deposits > $500 (other than your direct deposit payroll)

A little late now...this seems a a little silly considering it's down payment money. 

 

[usctrojancpa]

to avoid the gift letter thing, if possible, i would have your family give you the down payment money three months before you get pre-approved by the builders lender so they dont see the big deposit coming in and and ask you to do the gift letter thing. also, i would keep the down payment money in a separate bank account, otherwise be prepared to provide documentation on all deposits > $500 (other than your direct deposit payroll)

Qwerty nailed it.  The worst part of the loan process is having to document/provide support for deposits over $500 that are not payroll related.  Check with SGIP on the 80/10/10 loan product...his rates are very competitive and he'll provide you great service.  I have a few buyers that are pre-approved by him for the 80/10/10 loan program, but I just can't find them homes.  ???  :-\

 

[usctrojancpa]

to avoid the gift letter thing, if possible, i would have your family give you the down payment money three months before you get pre-approved by the builders lender so they dont see the big deposit coming in and and ask you to do the gift letter thing. also, i would keep the down payment money in a separate bank account, otherwise be prepared to provide documentation on all deposits > $500 (other than your direct deposit payroll)

A little late now...this seems a a little silly considering it's down payment money. 

You just save yourself the hassle of sourcing the gift money from your family to the lender.  They'll want to see a bank statement that shows the money coming out of their account and then match it up to amount going into your account.  If you want that low rate then you have to play ball with the lender and give them everything they want.

 

[Irvinecommuter]

to avoid the gift letter thing, if possible, i would have your family give you the down payment money three months before you get pre-approved by the builders lender so they dont see the big deposit coming in and and ask you to do the gift letter thing. also, i would keep the down payment money in a separate bank account, otherwise be prepared to provide documentation on all deposits > $500 (other than your direct deposit payroll)

A little late now...this seems a a little silly considering it's down payment money. 

You just save yourself the hassle of sourcing the gift money from your family to the lender.  They'll want to see a bank statement that shows the money coming out of their account and then match it up to amount going into your account.  If you want that low rate then you have to play ball with the lender and give them everything they want.

TIC's lender was like "we don't even need anything...heck a check is enough to prequal."

 

[MovingOnUp]

to avoid the gift letter thing, if possible, i would have your family give you the down payment money three months before you get pre-approved by the builders lender so they dont see the big deposit coming in and and ask you to do the gift letter thing. also, i would keep the down payment money in a separate bank account, otherwise be prepared to provide documentation on all deposits > $500 (other than your direct deposit payroll)

A little late now...this seems a a little silly considering it's down payment money. 

You just save yourself the hassle of sourcing the gift money from your family to the lender.  They'll want to see a bank statement that shows the money coming out of their account and then match it up to amount going into your account.  If you want that low rate then you have to play ball with the lender and give them everything they want.

Not true...don't take advice from these non-asians. we have different loan application forms. just check the box that says, from under your mattress.

 

[25inirvine]

to avoid the gift letter thing, if possible, i would have your family give you the down payment money three months before you get pre-approved by the builders lender so they dont see the big deposit coming in and and ask you to do the gift letter thing. also, i would keep the down payment money in a separate bank account, otherwise be prepared to provide documentation on all deposits > $500 (other than your direct deposit payroll)

Qwerty nailed it.  The worst part of the loan process is having to document/provide support for deposits over $500 that are not payroll related.  Check with SGIP on the 80/10/10 loan product...his rates are very competitive and he'll provide you great service.  I have a few buyers that are pre-approved by him for the 80/10/10 loan program, but I just can't find them homes.  ???  :-\

If its deposits from your own accounts do they still hassle you?  Or is it just from ones from 3rd parties? For example, pulling money out of a Roth from a different bank/brokerage and putting it in your checking?  Or just pulling money out of the savings of another bank and placing it in your main checking?

 

[qwerty]

to avoid the gift letter thing, if possible, i would have your family give you the down payment money three months before you get pre-approved by the builders lender so they dont see the big deposit coming in and and ask you to do the gift letter thing. also, i would keep the down payment money in a separate bank account, otherwise be prepared to provide documentation on all deposits > $500 (other than your direct deposit payroll)

Qwerty nailed it.  The worst part of the loan process is having to document/provide support for deposits over $500 that are not payroll related.  Check with SGIP on the 80/10/10 loan product...his rates are very competitive and he'll provide you great service.  I have a few buyers that are pre-approved by him for the 80/10/10 loan program, but I just can't find them homes.  ???  :-\

If its deposits from your own accounts do they still hassle you?  Or is it just from ones from 3rd parties? For example, pulling money out of a Roth from a different bank/brokerage and putting it in your checking?  Or just pulling money out of the savings of another bank and placing it in your main checking?

any deposit from any account - you will have to show them the account/statement to show the outbound transfer into your account.