When buying a home, coming up with the money for a down payment can be a headache for potential new home buyers. Some people use a gift from parents to help cover the down payment. But even if you do have a financial gift coming, you need to be careful how you use it. The DiMora Team are real estate experts in the Novi and Northville neighborhoods and we know that in order to use a gift on your down payment, lenders generally prefer the gift to come from a family member. Parents, grandparents and even siblings can usually give the gift. Neighbors or friends generally cannot provide the gift. It’s also important that the money is traceable. Experts say lenders are cautious of cash gifts so it’s a good idea for your donor to gift the money through check or a wire transfer. It is also a good idea for donors to document that they are financially able to make the gift and if supporting documents are passed on to you along with the gift, it’s a good idea to keep them readily available. Check out below to see what sold in Island Lake Arbors in April 2016:
26432 Fieldstone, Novi: 3 bedrooms, 2.1 bathrooms, 2,332 sq. feet, 2 car garage, Sold Price: $338,000
Island Lake Arbors Home Sold
April 2016
Also, if you want to use gift money toward a down payment, you will have to ask your mortgage lender to provide a letter for you and the for the donor to sign it. The letter must show that the gift is indeed a gift and not a loan to be repaid at a future date. For more information on Island Lake Arbors, or similar Northville or Novi neighborhoods such as Edgewater, Woodlands of Northville condos or Country Club Village, contact The DiMora Team today at 248-505-7728 or jim@dimora.com.