Tulsa Mortgage : Podcast 143 – Part 1
This is Steve Currington com in the Steven Tyler show episode number one 43.
Tulsa Mortgage With Steven Tyler and.
Steve Tyler one negotiate contract are too smart for him and they’re talking to him. No one knows what it’s like to get ready. Here’s Steve and Brian.
And Brian Helu Brian new are in the house if you’re listening on iTunes.
Our podcast today we’re talking about getting a gift or down payment that’s going to be our topic. And if you’re watching on total ending you or on YouTube we have a special guest Brian New Earth who’s our president CEO in from Colorado. Say hello Brian. Hey Lou. So we’re going to talk about Geffen’s. So oftentimes we have people that. Want to buy a house they need a down payment. But they don’t have a down payment. So where do they get it. So there’s a couple ways they can do it. Tyler talk about an FHA gift and how that works.
Tulsa Mortgage So you can get a gift from a family member for a down payment. Mom died because in Europe Onkel.
Step-Dad. ADOPTIVE PARENT I guess.
And then there’s a process to go through to do that. But you can essentially use their money as your down payment.
Tulsa Mortgage But it has to be a true gift. And there’s a gift letter that they have to sign and there’s a process for how they have to with the money so make sure you talk to your lender before you go moving money around. Because what people have done in the past is there they just get a thousand dollar check from mom they put in the bank or they get cash or they get something and they don’t realize that there’s rules of how we have to document it and it can mess things up so what we tell people and we’ve got one right now that that’s getting a gift from his daddy and didn’t know how much he’s getting but he think we had to talk to him from the beginning and say hey dude hold up don’t do anything until we know the exact amount. And then there’s a process in a way that we get a gift. Brian what if somebody does just random get a gift. What kind of problems can it create from an underwriting standpoint creates a lot of problems.
The biggest of them is you have a source for undocumented funds though. So nine times out of 10 the underwriters going to disregard the funds so that you basically can’t count it as as verifiable assets.
Tulsa Mortgage And so you get into a spot where you have created yourself a problem that you didn’t have to create. And so Brian and I talked about this yesterday because he’s got a client 800 credit score 20 percent down 300 thousand alone about 13 percent. That ratio calls him kind of a maybe a little like apologizing a little break and says hey open anything up. My dog got sick of the weekend and the bank was closed and I had to put the surgery from a dog who was $5000 on a credit card and everything.
And Brian’s like calm down it’s ok. It issues like a 13 percent your credit score is perfect. Don’t worry about it. But he’s educated his client even though they’re the perfect borrower don’t load ratio and everything to call him. If anything happens if anything different happens. And so that’s what you need to do if you’re a loan officer. You need to have that conversation with the kid to make sure that if they are getting gift funds if they are doing X they’re going to sell a car to get their down payment they’re going to do whatever it is that they have that communication with you and you open those lines communication early because if you don’t what happens is people just do stuff because as we’ve talked about a previous targets like the pink elephant and the like we’re should have him have. If they say oh I don’t really know. That is like the very That’s should be an indicator to you to dig right in the middle of that know and find out where that’s coming from because if they don’t know whether or not patients come in from then they may already be planning to get a gift from someone and you haven’t told them. What the rules are of getting the gifts so all you do is you make more problems.
Tulsa Mortgage Well not only that but I mean how many times have you guys said oh I’m going to get a gift. And then the next thing you know right before closing he gives you a bank account or a bank statement on account you had no idea you had. Right. So he put the money into another account. Then you had to pull statements on that when then you have undocumented deposits in there that underwriters fighting with you and everything. Look the easiest way if you’re going to do a gift and a family member is going to give you a gift. Get the gift letter sign send the money straight to tighten ask go. You don’t have to worry about Pullum bank statements where there could be extra problems and gift letter sign proof of the gift funds and you’re done.
He’s right. That’s really good. And you know that’s exactly what I would say and I’m so glad that Brian and I share in that we did talk about that but that is exactly right and that’s what I tell people to do. Don’t put in your bank account.
You know it’s one more step one more more paperwork. You’ve got to document more errors that you can have.
Tulsa Mortgage That’s what happens if you give it a go. Remember the guy that brought the check to closing from his new bank account. Yeah that was painful. I a guy he opened up a bank account the day before closing. And I guess he was really just trying to put any money he’s spending.