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Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 37066
Experience:  16 years real estate, Realtor. Landlord 26 years
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I am having issues with a lender, I have a $10,000 gift they

Customer Question

I am having issues with a lender, I have a $10,000 gift they want a justification for. They have 5 months of my bank statements, the deposit slip copy from my bank and they say it is not enough. They have to have legal justification of the source (Who gave it to me, why, the account transaction from their account, etc.). They money has been spent and is not in anyway helping with the purchase of the property. Is this legal for them to do this?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question..If you are applying for a loan with a bank, then they are allowed to request whatever financial information that they need to process the application or respond to any statutory obligations. If a person deposits a large amount of money into their account, they will normally request a paper trail for that money so as to make sure to their auditors that it did not come from an illegal source. .That is why they will typically request a "gift letter" from the donor so they have a way to explain to any auditors where that money came from if the loan was chosen for an audit. They aren't doing this to harass you or because it is fun, they are doing it because it is part of their loan application and verification process so that they are in compliance with their own internal regulations...So yes, it is it legal for them to do this and will happen every time when there is a large deposit if a loan is applied for...thanksBarrister

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