It is time for closing on your new home. You are supposed to show up with the down payment. Should you just bring your checkbook? How do you actually make a down payment?
Most lenders expect you to bring a cashier’s check to closing, which you can get from your bank. However, lenders do have some stipulations with this cashier’s check. It has to be from an acceptable source. You cannot get a loan to cover the funds or use your credit cards for a down payment. Using your own money for the down payment reassures the lender that you will not walk away and default on your mortgage.
There are special circumstances in which a lender may accept a down payment that is a gift from a relative. For instance, if you are making a down payment of 50 percent of the purchase price instead of 20 percent, the lender will likely accept a down payment that is a gift. However, it still must be brought to closing in the form of a cashier’s check.
Prior to closing, be sure to go by your bank in order to get the cashier’s check to help everything go smoothly at closing. You’ll be a homeowner before you know it!