It’s one thing to be a ‘cash buyer’ … another to be applying for a mortgage.
If you’re getting a loan, any lender will want to know where your ‘cash to close’ is coming from, and require domumentation… a paper trail.
Yes, your cash to close can come in the form of a ‘gift’ from a relative, as long as there is some sort of a paper trail. Your monies can also come through an inheritance, or from the sale of a car or a collection, or an insurance settlement …
The source and the amount of those assets will influence how a lender will view your loan application. And of course the appraised value of the property will be another underlying factor in how much, or how willingly, your financial institution will finance your acquisition. Income and assets are both factored in whenever you apply for a mortgage.
By the lender knowing the source of your funds for closing , a they can ensure that your ‘cash to close’ is not coming from yet another ‘side’ loan (line of credit or otherwise) which may not or may not have been recorded .
Whenever you are in the market to buy or sell real estate, we invite you to call us. As local real estate agents, intimately familiar with the Miami Real Estate Market, we will be more than happy to work with you… and will help you with every aspect of the buying and selling process… whether you are moving locally or relocating elsewhere. The Restivo Team at EWM Realtors, Inc.