If your children are grown and its hard to imagine what to buy them for Christmas. They have out grown their matchbox cars and barbie dolls, have obtained a great education, and they are now dedicated to a full time career. Perhaps one milestone that they have not achieved but more than likely is within reach is homeownership. As a parent here in Cumming Ga you can gift the gift of a downpayment for your sons and daughters. With interest rates so low and stabilization returning to the real estate market here in Cumming Ga, perhaps this Christmas is a great time for them to buy their first home. Coming up with a down payment often times stands in the way of most young adults for homeownership. Parents can gift up to $13,000 to each child who in turn will use this money to pay their downpayment.
If accepting a downpayment gift is part of your home financing strategy, be aware that there's a right way and a wrong way to accept a gift. You can't just deposit your parents' money into a bank account. First you will need a Down Payment Gift Letter. Include the amount of gift, the subject property address, the relationship of the gift giver, state that the gift is just that and not a loan, and all parties must sign and date the letter. Second you will need to create a paper trail. Use a certified check, make sure the gift money is for the exact amount as the letter states. Deposit the check with a teller and do not commingle the deposit with other deposits.
Do keep in mind every loan product is different and homebuyers must qualify for a loan that allows gift funds. To find out more about this topic or real estate in the Cumming Ga market contact us at 770-616-2873 or email agentpamchapman@gmail.com
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