Multi-Generational Purchase

Grandma provides the down payment.

Dad co-signs.

Kid picks the house.

Does this scenario sound familiar to anyone? This week we met with all the above to make sure we’re on the same page before we start the search process. Before we met, I spoke with Grandma first to learn more about the grandson she referred to us and then I spoke with the grandson and then I spoke with Grandma again to make sure she knew we spoke with the grandson. (Now breathe!)

Based on information we got from Grandma and The Kid, we arranged for an appropriate lender to be present. The lender needed his own set of paperwork from The Kid and his co-signer Dad.

As the agents for the Buyer(s), we also require our own set of paperwork which includes a copy of the driver’s license of the co-borrowers (Dad and The Kid), Agency Disclosure, a Buyer Broker Representation Agreement, letter from Grandma stating that she would provide funds for the down payment, and also proof of those funds in the form of a bank statement attached to said letter.

We’re almost ready to search for a home! All we’re waiting for now is the pre-approval letter from the lender so that we know how much they can comfortably afford to purchase. The pre-approval process must be complete before we take the next steps. This requires the buyers to provide the lender with their tax returns, pay-stubs, bank statements, credit checks, employment/income verification, etc.

When all this is done, we as the agents will consider it a formal, complete pre-approval. This is all important, since we take our work very seriously and will make sure our clients are fully prepared before we show them properties.

THE BOTTOM LINE: Grandma calls the shots!