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How to Avoid Common Moving Nightmares
Moving is a stressful time for everyone involved, but it doesn’t have to be. By avoiding common moving nightmares, you can make your move as stress-free and organized as possible. In this blog post, we’ll outline five common relocation nightmares and how to avoid them.
Not Labeling Moving Boxes or Taking Inventory
One of the worst relocation nightmares is not labeling your boxes or taking inventory of what you are packing. It can take hours to unpack when all your boxes look the same, and you don’t know what is in each one. To stay organized, label each box with its contents and take pictures of all items before they go into the box so you can keep track of what you’ve packed. Additionally, write an inventory list that includes everything in each box so that if something goes missing during the move, it will be easy to pinpoint where it was last seen.
Not Researching Enough Moving Companies
Another common nightmare when it comes to relocating is not doing enough research on potential moving companies. It is important to read reviews and ask around for recommendations from friends or family members who have used their services before. Make sure that any company you work with has insurance coverage so that any damage caused by their services can be covered. Comparing quotes from different companies can also help ensure that you get the best deal possible on a reliable company.
Not Getting a Large Enough Moving Truck
Nothing quite compares to having your truck arrive only to find out it isn’t large enough for everything you need moved! To make sure this doesn’t happen to you, measure every piece of furniture and calculate how much space they will need in a truck ahead of time. This way, if there are any surprises or changes along the way, you can adjust accordingly without having to worry about running out of room or needing an additional truck at the last minute.
Not Getting Rid of Stuff Ahead of Time
Clutter creates chaos during a move and can add unnecessary stress if not taken care of beforehand. Take some time before your move-in date to get rid of stuff that no longer serves a purpose (i.e., clothing items you haven’t worn in years, furniture pieces that are too big for your new home). This will save time as well as money since less stuff means fewer boxes and less weight for movers—which could lead to lower costs overall!
Not Packing an Overnight Bag
With all the hustle and bustle surrounding a move, it’s easy to forget about packing an overnight bag with the essentials (i.e., toiletries, pajamas). Make sure this doesn’t slip through the cracks by preparing an overnight bag ahead of time with all necessary items needed for at least two days—that way if anything gets lost in transit or takes longer than expected, unpacking/organizing once arrival happens at destination location(s).
Reduce Your Stress
Anyone who has ever moved before knows that it is not an easy task. There are a million things that can and often go wrong. The best way to avoid any disasters is by being prepared for them ahead of time. By following the tips above, you can hopefully avoid any major relocation nightmares!
Debunking Five Common Selling Myths
Selling your home can be a daunting task, and it can be hard to know what steps to take in order to make sure you get the best deal possible. That’s why it’s important to separate fact from fiction when it comes to preparing your home for sale. Here are five common myths about selling a home—and the truths behind them.
Myth 1: You should renovate the kitchen and bathroom.
Truth: While a remodel would certainly increase your property value, it’s not necessary—especially if you don’t have the budget for it. However, there are some inexpensive ways you can give your kitchen and bathroom a facelift without breaking the bank. Consider painting cabinets, replacing fixtures, and refreshing tile grout. These small changes will help spruce up the look of these rooms without all the hassle of a full remodel.
Myth 2: The interior of my home is more important than the exterior.
Truth: Actually, first impressions matter! Make sure that your landscaping is well-maintained and that you give your front porch or entryway an inviting feel with tasteful decorations like potted flowers or plants. Cleaning up any debris around the yard or driveway is also key—you want potential buyers to feel welcome right away!
Myth 3: There’s no need to stage my home if it is already clean.
Truth: Staging is so much more than just cleaning! Taking time to arrange furniture and décor in a way that shows off each room’s best features will create an inviting atmosphere for potential buyers. Even if you don’t have much furniture or décor on hand, minimalistic staging can still go a long way in creating an appealing environment for viewers.
Myth 4: Everyone is over granite and stainless steel appliances.
Truth: While granite countertops may no longer be ‘trendy,’ they are still classic additions that many people find desirable in homes today. Stainless steel appliances are also timeless classics that will stand out in any kitchen—but if they’re outdated models, consider updating them before listing your property to appeal more to potential buyers who might be looking for more modern features in their new home.
Myth 5: Home shoppers can paint over colors they don’t like.
Truth: Potential buyers may overlook some colors they don’t care for while touring homes; however, they might not want their hard-earned money going toward something they won’t appreciate down the road (like repainting). Painting walls with neutral colors will help ensure that prospective buyers focus on how livable each space is rather than how much time (and money) it would take for them to switch out wall colors later on!
Prepare the Right Way
Selling your home doesn’t have to be a hassle. With these tips in mind, you’ll be one step closer to getting top dollar for your house.
If you’ve been thinking about selling your home, be sure to contact me. I’ll be happy to answer any of your questions and provide expert guidance every step of the way.
5 Tasks to Take Care of After Closing on a Home
Congrats! You’ve just closed on your new home. But before you can settle into your new abode, there are still some tasks that need to be taken care of. Here is an overview of the five most important things to do after closing on a home.
Deep Clean the House
You may have done a thorough walkthrough before closing, but it never hurts to give the house another once-over—especially if it has been vacant for a while. Dust and clean all surfaces, including walls, ceilings, and floors. Vacuum or steam-clean carpets and rugs. And don’t forget about the windows too! A deep clean is also a great opportunity to assess any areas in need of repair or improvement prior to moving in your furniture and decor.
Change Out the Locks
It’s always wise to change all locks on exterior doors after closing on a home—even if you’re purchasing from someone you know or trust. It’s unknown who else may have copies of the keys from previous owners or contractors that had access during renovations. Have an experienced locksmith install deadbolts with at least an ANSI Grade 1 rating for added security measures.
Have Your HVAC Units Cleaned
Depending on how long it has been since they were last used, older HVAC systems can accumulate dust, dirt, and debris that can reduce their efficiency over time. To ensure they work as they should, have your air conditioning and heating systems professionally cleaned before turning them back on again post-closing. This will not only improve their performance but also make sure they are running safely and efficiently throughout the year ahead.
Update Your Driver’s License
Moving requires changing your driver’s license to reflect your new address (not to mention any other documents such as bank statements or voter registration). Contact your local DMV office for further instructions on how best to update these documents with your new address details—often, this just requires filling out a quick form online or via a mail-in application process.
Submit a Change of Address
Before you move into your new home, be sure to submit an official change of address form with USPS so that all mail sent to your old residence will be forwarded correctly (this includes online purchases). Submitting this form online is easy and takes only minutes—simply enter in all required information such as name(s), date of birth(s), etc., pay applicable fees (if any), then submit!
Time to Enjoy Your New Home
Moving into a new home is exciting—but before you can unpack boxes and get comfortable in your new space, there are some important tasks that need completing first!
From deep cleaning the house to updating your driver’s license information, double-check this list of five essential items after closing on a home for peace of mind that everything is taken care of prior to settling in for good!
5 Reasons To Live In Your New Home Before Renovating
Moving into a new home is an exciting experience! You’re filled with anticipation and excitement to finally create a space that truly reflects you and your family.
Whether this is your first time becoming a homeowner or you’ve owned in the past, it’s natural to want to start making changes right away. However, we recommend that you live in your new home for at least a few months before renovating.
Here are five reasons why you should wait before making any renovations to your new home.
You’ve Had Enough Stress Already
Moving can be an incredibly stressful time. From packing up all your belongings to signing the paperwork and unpacking everything in your new home – it can take quite a toll on you both mentally and physically. That’s why you should give yourself some time to settle in before starting any major renovations. It will give you the opportunity to get used to living in the new home without feeling overwhelmed or stressed out by the renovation process.
You Need Time To Plan
Renovations don’t happen overnight, and they require careful planning and thought so that everything goes smoothly from start to finish. If you jump right into renovating after moving into the new home, you may not have had enough time to consider all of your options or think through every detail of the project. Giving yourself extra time will ensure that you make well-thought-out decisions that lead to successful renovations that last for years.
Moving Has Strained Your Budget
Moving can be expensive, especially if you need professional movers or if you’re relocating across state lines. So, taking some extra time after moving into your new place will help reduce financial stress while also giving yourself more flexibility when it comes time to plan out how much money needs to be allocated towards the renovation projects.
Living In The Home Can Change Your Mind
Living in the house for 6–12 months gives you plenty of opportunities to get creative with ideas about what could potentially be done with each room in order to make it fit better with your lifestyle and tastes. Often times this leads homeowners to discover new ways they could use certain spaces or decide against doing certain types of renovations altogether because their ideas changed after living in the house for some time.
Re-Evaluate Your Renovation Choices
Many people end up making rash decisions when it comes time to choosing materials or deciding which rooms need renovating first–only later regretting their choices because they didn’t give enough consideration during the planning phase. Allowing yourself some extra time can help prevent costly mistakes like this from happening by giving you ample opportunity to research different materials and decide which rooms need tackling first before committing anything on paper (or on budget).
Enjoy Your New Home First
When moving into a new house, taking some extra time before beginning a renovation project is always recommended—especially if it’s been less than 6 months since moving day! While it might be tempting to jump right into transforming each room as quickly as possible, waiting until after you settle in will give you ample time for planning, save money on unnecessary expenses due to poor decision making, provide insight on how best to utilize specific rooms based on lifestyle habits, plus offer plenty of chances re-evaluate any potential choices made along the way. All these reasons will ensure that every renovation decision made is one that won’t soon be regretted!
Choose the Perfect Color Palette For Your Home (Like a Pro!)
Choosing the perfect color palette for your home can seem like a daunting task, but it doesn’t have to be! With a little know-how, you can create a cohesive and stylish look that will make your house feel like a home. Here are a few tips to get you started:
Choose a Color Scheme From the Largest Pattern in the Space
When you walk into a room, the first thing you notice is usually the largest pattern in the space. This could be a piece of furniture, an area rug, or even the wallpaper. Once you’ve identified the largest pattern, you can use that as your starting point for choosing a color scheme.
Decorate From Dark to Light, Vertically
Another helpful tip is to start with the darker colors when decorating a room. Paint your walls first, then add in darker-colored furniture and accessories. This will help create a sense of depth and dimension in the space. You can then add lighter-colored items as accents. This will help brighten up the room and make it feel more open and airy.
Start With the Formal Areas of the House
If you’re not sure where to start when it comes to choosing a color palette, begin with the formal areas of your house. These are typically the spaces that get used the most when entertaining guests, so you’ll want them to make a good impression. The living room and dining room are usually good places to start. Once you’ve established a color scheme in these rooms, you can carry it throughout the rest of your house for a cohesive look.
Use the Color Wheel
The color wheel is a helpful tool when choosing colors for your home. It can help you find complementary colors, which are colors that are opposite each other on the wheel. These colors work well together because they create visual interest and contrast.
Make Small Spaces Pop
One of the best ways to make a small space feel bigger is to use light colors. Light colors reflect light, making the space feel open and airy. If you want to make a small space feel bigger, try painting it a light color like white, cream, or pale blue.
Contrast Warm and Cool
Another way to create an inviting space is to contrast warm and cool colors. Warm colors like red, orange, and yellow create a cozy feeling, while cool colors like blue and green have a calming effect. Try painting one wall in a warm color and the other walls in a cool color for a balanced look.
Follow the Rule of Three
When choosing paint colors, it’s important to remember the rule of three. This rule says that you should only use three colors in your space. Too many colors can be overwhelming, so stick with three or less. Use one color for the walls, one color for accents (like pillows or art), and one color for trim (like baseboards or door frames).
Creating a Home You Love
Don’t let choosing a color palette for your home overwhelm you. By following these simple tips, you’ll be well on your way to creating a space you love.
The Hidden Costs of Buying a Home (That No One Tells You About!)
So, you’re finally ready to buy a home. Congrats! Homeownership is a huge milestone. But before you start packing your boxes and planning your housewarming party, there’s one important thing you need to do: figure out how much it’s actually going to cost you.
Sure, you know that you’ll need to come up with a down payment and pay closing costs. But there are also a number of other prepaid expenses that can come as a surprise to first-time homebuyers. In this blog post, we’ll break down some of the most common prepaid expenses and help you get a better understanding of what you can expect to pay when you buy a home.
Homeowners Insurance Premium
One of the most important prepaid expenses when buying a home is your homeowners insurance premium. Homeowners insurance protects you from financial loss in the event that your home is damaged or destroyed by fire, wind, vandalism, or another covered hazard. Most lenders require borrowers to have homeowners insurance in place before they will close on a loan.
The amount you’ll pay for your homeowners insurance premium will depend on a number of factors, including the value of your home, the location of your home, and the type of coverage you choose.
Specific Hazard Insurance
In addition to general homeowners insurance coverage, you may also need to purchase specific hazard insurance depending on the location of your home. For example, if you live in an area that’s prone to flooding or wildfires, your lender may require you to purchase flood or wildfire insurance.
The cost of specific hazard insurance will vary depending on the type and amount of coverage you need. However, it’s important to note that even if your lender doesn’t require you to have specific hazard insurance, it’s still a good idea to consider purchasing it. After all, it’s better to be safe than sorry!
Property Taxes
Property taxes are another common prepaid expense when buying a home—and one that can often come as a surprise to first-time buyers. Property taxes are levied by state and local governments and are used to fund public services like schools, roads, and parks.
The amount of property tax you’ll pay at closing will depend on the state and county in which your home is located, the assessed value of your property, and when you purchase the property.
Mortgage Insurance Premium
If a lender requires you to take out mortgage insurance (MI), then the premium could be included in your prepaid costs. Mortgage insurance is insurance that protects the lender in the event that you default on your loan.
Mortgage insurance is typically paid monthly as a part of your mortgage payment, but you might pay a lump sum at closing in addition to the monthly payments.
Initial Escrow Deposit
In addition to the prepaid expenses mentioned above, you’ll also need to make an initial escrow deposit at closing. This deposit is used to establish your escrow account, which is used to pay your property taxes and homeowners insurance premiums on your behalf each year.
Be Prepared
There are a lot of things to factor in when you’re buying a home. It’s not just the list price that you need to be aware of, but also the prepaid expenses. Homeowners insurance, mortgage insurance, and property taxes can all add up. Be sure to factor in these costs when you’re budgeting for your new home so that you don’t end up being surprised down the road.
Is Buying a House in a College Town a Good Investment Opportunity?
College towns can be a great place to buy an investment property. There is usually a high demand for rental units near campus, and the vacancy rate is generally low. However, there are some downsides to consider before purchasing an investment property in a college town.
Benefits of Buying a House in a College Town
A Large Pool of Tenants
One of the biggest benefits of owning a rental property in a college town is that there is no shortage of tenants. College students are always looking for off-campus housing, which means that you will have no problem finding someone to rent your property. And since there are always new students coming into town, you will never have to worry about your rental being vacant for long.
Consistent Rental Rates
Another benefit of owning a rental property in a college town is that the rental rates are very stable. This is because the demand for off-campus housing is always high, regardless of the state of the economy.
Easy Access to Entertainment
Owning a rental property near a college also has the perk of providing constant entertainment for your tenants. College towns typically have many bars and restaurants within walking distance of the university or college campus. This means that your tenants will never be bored or have difficulty finding something to do on weekends or during their free time.
Parents Often Pay Rent
The most important benefit of owning a rental property in a college town is that parents often help their children pay rent. This is because they understand the high cost of living near universities and colleges. As such, they are often willing to help their children out financially by paying part or all of their rent each month.
The Downside to Buying an Investment Property in a College Town
Higher Upkeep Cost
If you own an investment property in a college town, chances are you will have tenants who are students. And as any parent of a college student knows, they are not always the most responsible when it comes to taking care of a property. This can result in higher-than-normal maintenance and repair costs.
Higher Tenant Turnover
Another downside to owning an investment property in a college town is the high tenant turnover rate. Students typically only lease for one academic year at a time, which means you will constantly be finding new tenants and signing new leases. This can be time-consuming and costly if you are not using a professional property management company to handle the leasing process for you.
Shorter Lease Terms
Because students typically only lease for one academic year at a time, you will likely have to sign shorter-term leases than you would if you were renting to non-students. This means that your rental income may be less stable from month to month, which could make it difficult to cover your mortgage payments or other expenses associated with owning an investment property.
Possible Vacancies During the Summer Months
The last downside to consider when owning an investment property in a college town is that there may be periods of time when your unit is vacant due to students being away on summer break. This could result in lost rental income or having to lower your rental rates in order to attract new tenants.
Conclusion
While there are some potential downsides to owning an investment property in a college town, there are also many upsides that make it a worthy investment opportunity for those who are willing to take on the risk. If you do your research and work with a reputable property management company, you can minimize the potential risks and maximize your chances for success as a landlord in a college town!
4 Affordable Christmas Gifts Your Friends and Family Will Love
Trying to figure out what to get your friends and family for Christmas? Look no further!
Whether you’re shopping for your significant other, your best friend, or your parents, I’ve got you covered with 4 great gift ideas that won’t break the bank.
Bean Envy Cold Brew Coffee Maker
Some coffee drinkers are obsessed with finding the perfect cup of joe, and if you happen to know one of them, then the Bean Envy Cold Brew Coffee Maker is the perfect gift for them.
The Bean Envy Cold Brew Coffee Maker is easy to use and makes four cups of cold brew coffee in just minutes.
It’s made of high-quality materials and has a tight seal that keeps coffee fresh. Plus, it’s easy to store and serve from.
Anyone who loves coffee will love this brewer!
Night Light Bluetooth Speaker
Looking for a unique gift that will fit anyone on your list? Look no further than the Night Light Bluetooth Speaker!
This all-in-one speaker can be used as a wireless Bluetooth speaker, touch-control LED mood lamp, SD card music player, hands-free speakerphone, table lamp, and night light for children. It also has 360° Immersive Sound that will make you feel the music like never before. Plus, the built-in mic supports excellent hands-free capability with noise-canceling software.
The Night Light Bluetooth Speaker would make an excellent Christmas gift for anyone on your list!
Toscana Charcuterie Board
If you’re looking for a gift that is both unique and useful, look no further than the Toscana Charcuterie Board.
The board is made of hardwood and has a split-level design that allows for easy cutting of cheese. The three included cheese tools are also made of stainless steel and perfect for slicing hard cheeses. The carved moat around the perimeter prevents brine or juice runoff, making the board easy to clean.
Esmula Bartender Kit with Stylish Bamboo Stand
The Esmula Bartender Kit with Stylish Bamboo Stand would make a great Christmas gift because it is a professional bar display tool that has everything needed to create mixed drinks.
The bamboo stand makes the bar table look neat and elegant, while the smooth mirror effect on the shaker set gives it a sophisticated look.
This is the perfect gift for someone who loves to mix drinks, and it would look great on any bar table!
Time to Shop!
Christmas shopping doesn’t have to be stressful or expensive. These four affordable gifts are sure to please everyone on your list. So take a deep breath, relax, and enjoy crossing people off your list, knowing that you’ve found the perfect present for them.
How to Choose the Right Roofing for Your Home
With the rise in roofing styles and materials available in the market, it is tough to make the right choice. The cost and durability of the roof play a considerable part in your decision. To help you save your time and money, we’ve curated a list of roofing materials along with their pros and cons.
So, let’s choose the right roofing for your home!
Key Factors to Consider When Replacing a Roof
There are a few factors that need to be taken into account when choosing a roof:
- The durability factor
- How well does it perform during natural disasters such as hurricanes and fires?
- The weight – it should not be heavier than the existing roof framing; otherwise, it might fall
- How much slope does the roof have?
- How well it goes with the overall aesthetic of the house?
- How sustainable is it? Are the materials used recyclable and eco-friendly?
- Does the roofing comply with the local building codes?
- How much does it cost?
Types of Roofing Materials
The type of roofing materials varies from one homeowner to another. While one might need a roof with utmost strength, the other might have its focus on the slope. Different areas have different roofing requirements. However, these six roofing materials fall into the category of the most popular ones.
1. Asphalt Shingles
There are two types of asphalt shingles – laminate and single-thickness. These are made by mixing fiberglass with asphalt and finishing it with a textured surface. These are a common preference among homeowners because they are easy to install and budget-friendly.
Pros: These are available in a wide range of colors and are known to be the most affordable roofing material for homeowners.
Cons: The material doesn’t provide a significant level of insulation and is known to have a shorter lifespan than other roofing materials.
2. Wood Roofing
Wood has long been used as one of the most preferred residential roofing materials. However, it has high flammability that poses a significant threat. So, for areas that experience severe hot temperatures and there are higher chances of wildfires, homeowners don’t consider this a safe option.
Pros: It is an excellent roofing material for pleasant areas where the temperature doesn’t go extreme. Wood offers a rustic, natural look, making your house’s overall aesthetic look great. If you wish to get a great variety and are all about sustainability, a wooden roof is what you need.
Cons: The flammability rate is high, and there are higher chances of it catching mold. Additionally, the lifespan of wood is not limited.
3. Metal Roofing
Metal, such as aluminum, copper, steel, etc., is the most demanded roofing materials that are highly long-lasting and can withstand extreme weather. It has over fifty years of life expectancy. It poses a solid resistance to mildew, mold, and other water-related damages. However, they come at a cost. It takes time to install them as well.
Pros: Metal is a solid material that offers high solar reflectance, enabling efficient cooling and heating of homes.
Cons: It is the most high-priced roofing alternative compared to others.
4. Ceramic / Cemented Tiles
Ceramic or cemented tiles are luxurious; however, they are the heaviest roofing alternatives. In addition, they are expensive.
Pros: The tiles are excellent and energy efficient.
Cons: The weight of the tiles will require homeowners to provide extra frames for support.
5. Slate Roofing
One of the most used natural roofing options is long-lasting slate roofs. With proper care, they can last up to decades! A slate roof is a raw heat-proofing material that keeps your house warm and cozy. This roofing material is resistant to water damage and extreme temperature changes.
Pros: It is a sustainable and recyclable roofing material.
Cons: It is also pricier, and you will need additional frame support to ensure it sits well.
6. Synthetic Roofing
Plastic, rubber, and polymer are known as synthetic roofing. It is made to offer a great look, color, and texture at a lower cost.
Pros: These are made keeping durability and affordability in mind.
Cons: Recent developments claim synthetic roofing tends to absorb a specific moisture level.
When you’re considering a replacement for your roof, be sure to contact a roofing expert.
Everything You Need to Know About Gift a Down Payment
A home is one of the most significant assets you can own. Purchasing a home is a route to building wealth. Similarly, gifting a down payment to a loved one can help set them up. However, before you commit to a down payment gift, you must look at your current finances.
If you haven’t been able to save enough funds to purchase a home, there are other ways to go about it, such as borrowing from lenders to complete a down payment with gifted money. These, however, have a different set of rules as compared to traditional home loans.
In this blog, we’ll discuss all that you need to know about down payment gifts.
All About Gifting a Down Payment
There is no better way to jump-start your financial route to homeownership than by receiving gifted funds for a down payment. It’s common for parents, siblings, or grandparents to gift a down payment for significant milestones such as marriage or graduation. However, a down payment gift from parents comes with fewer tax implications.
Who is Applicable for Gifting a Down Payment?
It all depends on the mortgage/ lender programs that you’ve opted for. Most loans will allow down payment gifts from blood relatives and godparents. However, others allow gifts from non-blood relatives and charitable organizations. The rules vary for each.
How Much Can Be Gifted?
It is one of the most common questions amongst borrowers who receive gift money from their parents for a down payment. The donor has to meet the requirements. However, factors such as borrowers’ credit can influence the amount gifted.
In the 2022 tax year, parents together can gift their children up to $32k without the fear of activating the gift tax. Parents can gift a complete down payment in place of shares. In addition, these gifted funds sit well with mortgage lenders.
The Significance of Gifting a Down Payment As a Parent
Today there is immense pressure on children – with rising rent rates and student debt load, it is impossible to save up a good chunk for a down payment. Parents can support their children in building their equity earlier to enjoy long-term financial well-being. It is a far better alternative than signing your child’s mortgage. Why? Because if your child cannot make the payments, you’ll have to make them on their behalf.
Regardless of whether your child is financially stable currently, they might face a job loss or some adversities shortly. It will help them through their rough period. If you choose against it, there are chances that at that point, you might be close to retiring and won’t be able to help as much as you’d like.
How to Gift Your Child a Down Payment
1. Keep Emotions Out of Financial Decisions
Emotional decision-making will get you into trouble. If you are firm about gifting a down payment to your child, check your finances and assess what you can realistically afford to give. Think strategically, keeping your future in mind. If you don’t have enough and are planning on withdrawing money from retirement, life insurance policy, or savings, it will only mean financial issues for you.
2. Gift As Early As Possible
It is best to make early payments to your child. Preferably two to three months before they start applying for a mortgage. You can easily send the money to your child’s bank account or via check or wire transfer. It will allow the funds to season and support the verification process that will help identify that the money came from a valid source.
3. Keep Your Paperwork Prearranged
Before using gift funds, it is necessary to submit a gift letter to your lender. It is a document that offers proper documentation defining the parties involved and confirms that the finds are indeed a gift. The letter will contain you and your spouse’s name (if applicable) along with the amount being gifted, contact information, and the purpose of the gift. You will also need to provide them with account statements that show the movement of funds.
Down Payment Gift Rules
There are a few things you should know when it comes to down payment gifts.
Dos
- be straightforward about receiving a down payment gift.
- Keep a record of the movement of funds.
- Accept the down payment gift if it sits well with the requirements.
- Ensure the total of gift funds is within the limit unless you wish to pay taxes on it.
Don’ts
- inform your lender that you’ve received a down payment gift if they expect you to pay back the funds.
- Forget to reveal to your lender the gift that you’ve already received.
- Be so sure that all mortgage plans will allow down payment gifts.
- Overlook the federal tax gift elimination restrictions.
We hope this blog answers all your questions regarding gifting a down payment and will allow you to gift yours easily. Additionally, it will help save you time and hassle.
