What should the lender do next after noticing a large lump sum deposited in Jake's account that he claims is a birthday gift from his parents?
Understand the Problem
The question is asking for the appropriate action a lender should take after noticing an unusually large deposit in a bank statement provided by a loan applicant, where the applicant claims it is a gift. The focus is on compliance and verification in the loan process.
Answer
Request a gift letter and verify the transfer with bank statements.
The lender should request a gift letter from Jake's parents. This letter should confirm that the funds are a gift and do not need to be repaid. Additionally, the lender may need to verify the transfer with bank statements.
Answer for screen readers
The lender should request a gift letter from Jake's parents. This letter should confirm that the funds are a gift and do not need to be repaid. Additionally, the lender may need to verify the transfer with bank statements.
More Information
The gift letter is an important document required by lenders to confirm that the funds used aren't loans that require repayment. It helps ensure that the borrower is not under additional financial obligations.
Tips
A common mistake is not providing a properly formatted gift letter or failing to provide verification documents like bank statements, which could delay the loan process.
Sources
- Rules For Giving And Receiving Home Down Payment Gifts - Experian - experian.com
- What Is A Gift Letter For A Mortgage? - Bankrate - bankrate.com
- Gift Letters For Your Mortgage: A Guide - rocketmortgage.com
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