Most first-time buyers can qualify for a mortgage loan, but they may need help from parents to make the down payment or closing costs on their home. There are loan programs that minimize the down payment and closing costs for first-time buyers. These programs usually require that 3 to 5 percent of the purchase price come from the buyers' funds, not from a loan or gift. Most lenders ask for the last three months' bank records. The borrower will be asked to reveal the origin of any large deposits. If the money comes from the homebuyer's parents, the lender may not consider those funds when qualifying the buyers.
Parents who are planning to help their children finance a home should transfer any funds several months before the house-hunting process begins. If it is a loan rather than a gift, a formal re-payment agreement should be drawn up between parents and children to eliminate potential misunderstandings or future complications with either estate.
Scott Team Real Estate RE/MAX Pembroke Realty Ltd. 182 Pembroke Street East Pembroke, ON Canada K8A 3J7 Phone #: 613-732-3601 613-735-8188 866-735-8188 Fax #: 613-732-0999 Drew Scott: Drew@ScottTeamRealEstate.com James Scott: James@ScottTeamRealEstate.com
The Scott Team has experience in all aspects of Real Estate. Our unique approach guarantees your needs are handled professionally and timely. The Drew Scott Team specializes in serving Petawawa, Pembroke and Renfrew County. Always putting you first!
www.ScottTeamRealEstate.com
is brought to you by The Drew Scott Team, real estate for
Pembroke, Petawawa and Renfrew County, Ontario
- NUMBER1EXPERT 
