The gift's credibility such that it has been backed by a letter which has been signed by the donor. This letter on the other hand should also be backed by the bank statements of the donor.
Explanation:
Buying a home is not that easy, unless you have a lot of money to cash out. For most people, they need to find some ways to make the purchase easier and one of these is through a "cash gift." There are actually many guidelines required by lenders before they can allow you to use gift as a down payment for funds. For example, the gift should come from family members or from those a person marries.
For a lender, there are many criteria to consider. One of the most valuable is the credibility of the gift that it will be backed by a letter which has been signed by the donor and the benefactor. <u><em>The lender wants to make sure that it is, indeed, a gift and not a loan.</em></u> <u>The donor's bank statement should also be evident.</u>
