Documents PDF Online
Homepage ↦ Fill Your Gift Letter Form
Jump Links

When it comes to securing a mortgage, many homebuyers often receive financial assistance from family or friends. In such cases, a Gift Letter form plays a crucial role in documenting these contributions. This form serves as a formal declaration that the funds provided are indeed a gift and not a loan, which is essential for lenders to assess the borrower's financial situation accurately. The Gift Letter typically includes details such as the donor's name, the recipient's name, the amount of the gift, and a statement confirming that repayment is not expected. Furthermore, the form may require the donor to provide their relationship to the recipient, which helps establish the legitimacy of the gift. By ensuring that all necessary information is clearly outlined, the Gift Letter helps streamline the mortgage approval process and provides peace of mind for both the lender and the borrower.

Gift Letter Preview

GIFT LETTER

Applicant(s):

Loan Number:

I,

 

 

, do hereby certify the following:

 

(Donor)

 

 

 

(1) I have made a gift of $

 

to

 

 

 

(Amount)

 

 

(Recipient)

 

Whose relationship is:

 

 

 

 

 

 

(Relationship)

 

 

 

(2) This gift is to be applied toward the purchase of the property located at:

(Property Address)

(3)No repayment of the gift is expected or implied in the form of cash or by future services of the recipient.

(4)The funds given to the homebuyer were not made available to the donor from any person or entity with an interest in the sale of the property including the seller, real estate agent or broker, builder, loan officer, or any entity associated with them.

(5)The source of this gift is:

(Source)

Donor Signature

Date

Borrower Signature

 

 

 

 

Donor Name (Print or Type)

 

 

Borrower Signature

 

 

 

 

Donor Address

 

 

 

(

)

 

 

 

Donor Phone Number

WARNING: Our signatures above indicate that we fully understand that it is a Federal Crime punishable by fine, imprisonment, or both to knowingly make any false statement concerning any of the above facts as applicable under the provision of Title 18, United States Code, Section 1012 and 1014.

Attachments:

1.Evidence of Donor's Ability to Provide Funds.

2.Evidence of Receipt of Transfer of Funds.

Calyx Form - giftlttr.frm (05/02)

Common mistakes

  1. Inaccurate Information: Many individuals fail to provide accurate details about the donor and recipient. This can include incorrect names, addresses, or relationships. Ensuring that all information is correct is crucial for the validity of the gift letter.

  2. Omitting Required Signatures: A common mistake is neglecting to obtain the necessary signatures. Both the donor and the recipient should sign the letter. Without these signatures, the letter may not be considered valid by financial institutions.

  3. Failure to Specify the Gift Amount: Some people forget to clearly state the amount of the gift. It is important to include this information to avoid confusion or disputes later on.

  4. Not Including the Purpose of the Gift: Individuals often overlook the importance of explaining the purpose of the gift. Clearly stating that the funds are a gift for a specific reason, such as a home purchase, can help clarify intentions.

  5. Ignoring State-Specific Requirements: Each state may have different requirements regarding gift letters. Failing to research and comply with these specific regulations can lead to complications in the future.

↓ PDF File

Find Popular Documents

Share Transfer Form J30 - Every transaction recorded contributes to the overall financial health of the corporation.

For those utilizing the FedEx Release Authorization form, it's essential to understand that this document not only facilitates package delivery in the recipient's absence but also emphasizes the importance of providing explicit instructions for secure drop-off. As outlined on TopTemplates.info, the accurate use of this form can greatly enhance the efficiency of the delivery process, while ensuring that packages are securely handled according to the recipient’s preferences.

Free Bid Template - Serves as an initial agreement that may lead to a formal contract.

Can One Parent Take a Child on a Cruise Royal Caribbean - Parents must provide emergency contact information on the form.

Dos and Don'ts

When filling out the Gift Letter form, it’s important to ensure that all information is accurate and complete. Here are some guidelines to help you through the process.

  • Do provide your full name and contact information clearly.
  • Do specify the amount of the gift being given.
  • Do include the date of the gift to establish a clear timeline.
  • Do sign the letter to validate your intent.
  • Don't leave any sections blank; every part of the form is important.
  • Don't use vague language; be specific about the nature of the gift.
  • Don't forget to check for spelling and grammatical errors.
  • Don't provide false information; honesty is crucial in these documents.

Following these guidelines will help ensure that your Gift Letter form is completed correctly and effectively. Take your time, and review your entries before submitting the form.

Misconceptions

Many people have questions about the Gift Letter form, leading to several misconceptions. Understanding these can help clarify its purpose and use. Here are four common misconceptions:

  1. The Gift Letter form is only for large sums of money.

    While it is often associated with significant financial gifts, the Gift Letter form can be used for any amount. It serves as a declaration that the funds are a gift and do not need to be repaid, regardless of the size.

  2. Only family members can provide a gift.

    This is not true. Friends, relatives, or even organizations can give gifts. The key factor is that the giver must clearly state that the funds are a gift through the letter.

  3. A Gift Letter form guarantees loan approval.

    While the form can strengthen a loan application by showing additional funds, it does not guarantee approval. Lenders consider various factors, including creditworthiness and income.

  4. The Gift Letter needs to be notarized.

    Notarization is not typically required for a Gift Letter. However, some lenders may have specific requirements, so it’s essential to check with the lender to understand their guidelines.

Detailed Guide for Using Gift Letter

When preparing to fill out the Gift Letter form, it is essential to ensure that all necessary information is accurate and complete. This form serves as a declaration of a monetary gift, often required in financial transactions such as home purchases. Once the form is filled out, it will be submitted to the relevant parties involved in the transaction.

  1. Begin by entering the date at the top of the form.
  2. Provide the name of the donor, who is giving the gift.
  3. Include the donor's address, ensuring it is current and accurate.
  4. List the recipient's name, the person receiving the gift.
  5. Fill in the recipient's address, confirming it is correct.
  6. State the amount of the gift clearly, using numerical and written forms for clarity.
  7. Indicate the relationship between the donor and the recipient.
  8. Sign and date the form at the bottom, confirming the details provided are true.