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What if I get gift money after pre-approval?

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October 29 2010 - North Providence
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If possible, the easiest path is to have your donor wire the funds directly to the closing agent.  That way your paper trail is cleaner and requires only a gift letter signed by the donor.
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November 02 2010

that's fine - couple days before closing is ok!

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November 02 2010
No big deal.  Just provide your lender a paper trail to source the gift funds and get the donor to complete a gift letter.  The paper trail includes documenting the donor had the funds to make the gift, the funds coming out of the donor's account and then into your account.  Ideally, the donor is a family member otherwise you will have other issues to address.
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November 02 2010
A typical requirement for the paper trail of gift funds is to show the funds coming out of the Donor's account and going into your account. This can be accomplished by having Donor provide their bank statement/print out showing funds coming out of their account and copy of the check before you deposit it into your account and your deposit ticket/receipt for that amount.
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November 02 2010
With anything having to do with funds used in a mortgage, keep a detailed paper trail of the funds and discuss proper documentation with your broker/lender.  A little work up from will help streamline the process and make your mortgage process go smoothly without last minute headaches.

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November 02 2010
This is not a problem. We understand mortgage application data is fluid. FHA has great gift guidelines. Discuss with your lender and ask them for a document checklist once you fully disclose the money trail, who is gifting etc. They will furnish a gift letter and a document checklist. 

Clearly not a problem. Also the other post answered your question very well. I believe you have your answer.
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November 02 2010
If you have a pre-approval from a broker or a lender, that means the downpayment and source have already been verified by the person doing the preapproval. If you are receiving the gift between the pre-approval date and the start of the purchase transaction, then you just have to provide a paper trail of the funds supporting that with a gift letter. If you deposit the gift funds and dont start the loan transaction for another 2 months from the date of deposit, then you should be ok without the paper trail. Again all the required documentation depends on which lender you chose to go with. Some lenders are getting very picky. 
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November 02 2010
In my experience as long as there is a paper trail, as previously mentioned, you should be all set!  The money can be gifted, BUT you must show it is in YOUR account!!!  Talk to the mortgage broker that pre-approved you and they can best advise you!

Erin Diaz, Broker ~ Owner
Beaches & Backroads Realty
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November 01 2010
There was a similar question to this just asked. Most banks look back 2-3 months for proof of funds. You will therefore need some proof of where the money came from. As far as I know, it only needs a paper trail but maybe someone else knows more about it.
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October 29 2010
 
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What if I get gift money after pre-approval?
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