My Conversation With Loan Officer Ken Pitts
Around this time of year, first-time homebuyers are getting gifts to help cover closing costs and down payments. But how does that affect their mortgage? Today I’m talking with Ken Pitts from First Choice Mortgage Advisors to figure that out. The first and most important thing to realize is that all lenders are bound by the Anti-Money Laundering Act, which means they have to follow strict regulations regarding gifts.
You can watch the full episode above, or you can skip to each section using the timestamps provided below:
0:00 — Introducing today’s topic and our guest
0:43 — The lender has to verify the source of the funds
1:34 — Gifts need to be within family members
2:54 — Expect to document your gifts
3:45 — How far back do lenders look for gift funds?
5:03 — How does a 1099 mortgage application differ from a W-2 employee?
6:44 — It pays to talk to a loan officer early
8:03 — Wrapping up
If you want to reach out to Ken, you can call him at 610-637-7325 or visit his website. If you have any questions about gifts in the mortgage process or real estate in general, feel free to call or email me. I would love to help.