Down payment confirmation can be extensive. This guide will help you to understand and prepare for what will be required.
To comply with anti-money laundering legislation, all lenders are required, by law, to verify your down payment funds and where they originated from, going back 90 days. This can include the following:
- Bank Statements: 90 days of complete, unredacted statements from ALL accounts that are holding funds that will be used for down payment and closing costs.
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- must clearly show: name of account owner, address of account owner, name of financial institution, account number
- must provide documentation for any large deposits
- all investments should be redeemable
- it is strongly advised to minimize unnecessary transfers between accounts as much as possible until the lender has signed off on down payment verification
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Gift Letter (if applicable): any funds being gifted to you must be verified via a gift letter (supplied by us/lender) which will be signed by the giftor stating that the gift does not need to be repayed
- giftor may need to supply bank statements showing that they have access to the funds
- funds should be gifted via bank draft and a copy/photo of the draft provided
- will need to show receipt confirming gift has been deposited to the borrower’s account a minimum of 15 days prior to closing
- Separation Agreement or Will (if applicable): if funds are from a separation or inheritance, a letter from a lawyer verifying the source of the funds and a trust ledger will be required
