Home Financing in Springfield, MO: Loans, Rates & Programs

And so this is not the same thing, but so many people have a family member, you know, a grandma, an uncle, Yeah. someone that has said, "Hey, if you ever buy a house, let me know cuz I'd like to help." And so, you know, a lot of times like on our our final closing disclosure, it shows them bringing some funds to close, but that is really coming from like a family member that's decided to gift them money. Yeah. Do you want

to let's talk about kind of gift and retirement funds just very briefly. Yeah. Just kind of the the do's and don'ts because there's a there's a process for that as all things. Mostly thank thank our government to make sure they like to know where all the money's coming from and so there's a process there that really needs to happen. So, if you want to kind of go over that. Yeah, so the biggest thing I tell people, like if there's one thing you remember

when it comes to either gift or an old retirement account, is that myself, Ivy, Cathy, Britney, we're here to get you into the house. So, what I mean by that is like we're think of us as like your coach to to to get you where to where you want to go, but before you do anything, run it by us because sometimes a lot of times borrowers are just trying to be helpful and maybe they hear this and they're this this video and they're they're they go

and talk to grandma and the grandma goes to her mattress and pulls out $10,000 in cash and gives it to to the, you know, the person that wants to buy the house and they go stick it in their bank account. Well, there's there's reasons that's going to be difficult to document. So, the biggest thing I would tell people is if you remember one thing about gifts or old 401(k)s or or any other funds that you want to use for a house, but you're not sure about,

talk to us before you do anything with it because we want to walk you through the easiest way to document it and there are certain ways that has to be documented. It's not our rules, it's government agency rules. So, when it comes to gifts, generally speaking, there can be some exceptions to this, but it generally needs to come from a family member. Um depending on the loan program, a fiance or a future-to-be father-in-law or mother-in-law can be okay in with some loan programs and then cannot

be okay with other loan programs. That's why it's important to run it by us before money's moved around. Yeah. Generally speaking, though, it's much easier than people think it is. For the most part, we tell people if they're going to get a gift from a family member, just confirm the dollar amount with the family member. Don't transfer any money. Get you pre-qualified before the gift's even transferred. And then you help them find a house. They get under contract. We know the specific property address.

We know how much down they're going to need. Then we tell them have that family member make go get a cashier's check made out to the title company that you're going to close at, and in the remitter put the donor's name. That keeps them from like we don't need much from the donor then, which is nice. There is a letter that needs to be filled out just to confirm it is a gift. Um but back in the day, we actually, depending on the loan program, would

have to get a bank statement from the donor. And donors don't You know, it's one thing to give money, but they don't necessarily want to provide a bank statement. That can really be avoided now. The biggest thing though is talk to the lender before you start moving things around. When it comes to retirement funds, same thing. We really want to guide you through that because this did come up a couple months ago. We encouraged the borrower to get the process started, and then it took them

the In their mind, they thought, "Oh, this is going to be easy." And they started it like I think 2 weeks before closing. Well, that particular 401k administrator was super slow. Oh. And I think it was down to the wire before they actually got the the funds to the borrower. That's again why bringing it up to us, we walk you through what to do because every situation, especially when it comes to old 401k is different. Yeah, and and something to just mention as

far as the retirement accounts is talk to your if you have one the administrator or advisor because you don't necessarily always have to cash those out to access the funds. Sometimes you can you can borrow against them and you essentially they're all different but you the the best ones you you pay it back but you're paying yourself interest into your own retirement account which is pretty awesome. If someone's watching this right now, I would encourage them just just so that they know is an option.

If you do a 401k talk to your 401k administrator if there's an option to do a 401k loan especially for the purchase of real estate. Yeah. Yeah. Most of my borrowers are surprised that that's an option and as you mentioned the interest that they do pay on it actually goes back to them. And also there's a very usually low cost setup fee. People are usually pleasantly surprised. Maybe they maybe they don't even end up using that aspect for for the purchase of the home

but they just have kind of peace of mind knowing that if they've got $20,000 okay. Generally speaking they let you access half of that with a 401k loan. Of course everyone's different. You have to confirm that. But for a lot of people it gives them peace of mind that wow if I ever have an emergency maybe I become a homeowner and I don't tap into it to purchase it but Yeah. I got to pay a deductible for a new roof or whatever. I've got

these funds available. Yeah.