Gifting money for down payment on home purchase

When is it best to advise the realtor that you are going to be receiving gifted funds from a family member in assisting with the down payment; upfront or wait until it is closer to closing?
  • June 14 2014 - US
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Answers (4)

Profile picture for Mark Queener
I agree with the others below and tell your real estate professional and lender upfront.  The last thing you need is a surprise that could delay settlement and jeopardize the transaction.  This is the biggest transaction of your life.
  • June 14 2014
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Profile picture for nwhome.us
Actually, wetdawgs, it is information that the agent needs in order to write the offer and complete the financing contingency accurately. It has to be disclosed to the seller that a gift will be used or the seller will assume that the cash is at hand.  If the donor died or changed their mind in the midst of the deal, the contingency would not protect the buyer unless the gift was disclosed.

Depending on the market, the gift might also need to be in the buyer's account prior to making an offer.  If the funds are coming from over-seas this can severely impact the timing of the deposit.

The agent is bound by law (in most cases) to confidentiality so that's the issue you should be examining. What is the company's confidentiality policy statement?

The best of all situations is that you trust your agent and speak openly and truthfully with them.  Withholding any information may impact your ability to succeed in your purchase.  If you don't trust your agent look around for one that you can trust.
  • June 14 2014
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Time is of essence.  Show the lender how to draft up the letter and how much time left for loan contingency in your purchase contract.


Sam Shueh
  • June 14 2014
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Profile picture for wetdawgs
This is primarily between you and your lender.   You should do it upfront so that you have time to get the proper documentation.
  • June 14 2014
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