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GIFT LETTER TEMPLATE[DONOR NAME & ADDRESS OR USE DONOR LETTERHEAD]Insert dateJihui Yang, Ph.D. Vice Dean, College of Engineering University of Washington 3920 E. Stevens Way NE 371 Low Hall, Box 352180 Seattle,
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How to fill out gift letter for mortgage

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How to fill out gift letter for mortgage

01
Begin by addressing the gift letter to the lender or mortgage company.
02
Include the full names and contact information of both the donor (person giving the gift) and the recipient (person receiving the gift).
03
Clearly state the purpose of the gift letter, which is to provide documentation of a financial gift to be used towards the recipient's mortgage.
04
Specify the exact amount of the gift and ensure that it matches the amount stated on the mortgage application.
05
Include details about the source of the gift, such as the account from which the funds will be transferred or the method of payment (e.g., check, wire transfer).
06
Clearly state that the gift does not need to be repaid and that no interest or fees are associated with it.
07
Provide any additional information required by the lender, such as a statement of relationship between the donor and recipient, or any conditions attached to the gift.
08
Both the donor and recipient should sign and date the gift letter, and it should be notarized if required by the lender.
09
Make copies of the signed gift letter for both the donor and the recipient, as well as for the lender.
10
Submit the gift letter along with any other required documentation to the lender or mortgage company.

Who needs gift letter for mortgage?

01
Anyone who is receiving a financial gift from a family member, friend, or other person to be used towards their mortgage may need a gift letter.
02
Lenders often require gift letters to verify the source of funds, ensure that the gift is not a loan that needs to be repaid, and to comply with mortgage regulations.
03
First-time homebuyers who are relying on financial help from their parents or relatives, or individuals who are unable to qualify for a mortgage on their own, are common examples of those who may need a gift letter for mortgage.

What is Free Gift Letter for Mortgage Template - PDFWord Form?

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Template Free Gift Letter for Mortgage Template - PDFWord instructions

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A gift letter for a mortgage is a document that states that a monetary gift given to a homebuyer is not a loan and does not need to be repaid, thus ensuring that the funds can be used toward a down payment or closing costs.
Typically, the homebuyer (borrower) is required to provide a gift letter when they receive a financial gift from a family member, friend, or other donor to qualify for the mortgage.
To fill out a gift letter for a mortgage, the donor must include their name, address, relationship to the borrower, the amount of the gift, a statement confirming it is a gift and not a loan, and their signature along with the date.
The purpose of a gift letter for a mortgage is to document that the funds provided to the borrower for the down payment do not need to be repaid, ensuring that the borrower meets loan qualification requirements.
The gift letter must report the donor's name and address, the borrower's name, the amount of the gift, the nature of the gift (as a gift and not a loan), the date the gift was given, and the relationship between the donor and the borrower.
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