Home Buying in 45385>Question Details

twoshortshae…, Home Buyer in Xenia, OH

Do we still need to get pre-qualified if a wealthy family member will be loaning us the money to buy a house?

Asked by twoshortshaeffers, Xenia, OH Thu Jun 7, 2012

We are first-time home buyers with excellent credit and very little debt.

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Answers

5
If you mean that your family member is loaning you the entire amount to buy the house then no, you just have to qualify with your family (don't make them mad!!). If your family member is loaning you part of the money, for example covering all the out of pocket expenses, then you should get with a Loan Officer and give them the full picture.

If the seller is asking for proof of funds then you generally can show them a statement from the account of your relative along with a statement that they will be providing the funding. The seller just wants the money, whatever arrangements you make is your business.

Hope that helps.
2 votes Thank Flag Link Thu Jun 7, 2012
Hello, the purpose of a pre qualification letter serves as a double benefit. It says to a seller that you are a ready, willing and able buyer. It also determines for you how much house you can shop for.
In your particular case having the funding all you need to submit with an offer is a proof of funds letter.
As an answerer to your question, you do not need a pre-qualification letter.
Respectfully
James Crawford
H.E.R. Realtor
554.8056
0 votes Thank Flag Link Wed Mar 5, 2014
If you are getting cash for the entire purchase there is no need to speak with a loan offer. You will however need to have proof of fund so the seller can see you are a serious buyer.
0 votes Thank Flag Link Mon Dec 10, 2012
You wouldn't need to involve a lender at all in the purchase of a home. Any terms associated with the family member funding your purchase are with them only. The seller will not care where the money is coming from as long as it is there at closing.
0 votes Thank Flag Link Mon Dec 10, 2012
you would at least need to show the source of the funds. Will they be loaning you the entire amount or just the down payment? If just the down payment, you would still need to prove you can get a mortgage for the balance.
0 votes Thank Flag Link Thu Jun 7, 2012
My husband spoke with him, but to my knowledge, he is loaning us the full amount. Thanks for your help!
Flag Thu Jun 7, 2012
My husband spoke with him, but to my knowledge, he is loaning us the full amount. Thanks for your help!
Flag Thu Jun 7, 2012
My husband spoke with him, but to my knowledge, he is loaning us the full amount. Thanks for your help!
Flag Thu Jun 7, 2012
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