Family communication with a home purchase? Yes, I do that too!

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Image courtesy of jscreationz / FreeDigitalPhotos.net

This past August I was helping a young couple purchase their first home.  It was as simple and straight forward as could be.  Julie’s parents were kind enough to help out with the down payment by giving a gift to the young couple.

The Bank had everything they needed well in advance of closing from Jim and Julie and we had a signed gift letter from Julie’s parents.  There was only one item left for us to issue a final approval and be ready to close.

If you have purchased a home in the past 2-4 years, you may be aware of how much additional documentation is needed from the mortgage applicant these days compared to 5-10 years ago.  Obviously, a first time home buyer would not be aware of how extensive this can be until they enter into the process.  With gift funds, the money needs to be traced from start to finish, meaning we need to show the account the money came from and the account that received the money to coincide with the provided gift letter.  This is where we hit a brief impass.

Julie’s father refused to provide the account statement showing the money leaving the account.  I asked Julie if it would be alright for me to talk to him and explained to him the process and why these provisions had been put in place, he began to understand even though he didn’t agree with it (who does?).  The next big quirk was that he did not want Julie to see his financial account information as he felt it was an invasion of privacy as well.

I came up with a solution to our speed bump after a little thought.  For the same reason, he would not fax the information to me or send it digitally via email because he didn’t trust technological security. What we decide to do was a little cumbersome for Julie but it solved the issue.  We had her father seal the account in an envelope and have Julie hand deliver it so we could bypass the post office, the computer and the fax machine yet still get the information we needed in my hands.

Now, I’ll never be sure what his reasons were and I’m content with the fact that it’s none of my business. What I am content with is that despite an issue that literally could have cost his daughter the ability to buy this house, we found a solution that would calm his concerns and still let me get the required information to the Lender.

Julie and Jim are expecting Twins this spring…I couldn’t imagine them trying to fit the new additions into their apartment.

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