Is it legal for a loan processor to ask the person who is providing gift money to the purchaser of the real estate to provide documentation regarding the money?
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Is it legal for a loan processor to ask the person who is providing gift money to the purchaser of the real estate to provide documentation regarding the money?
Asked on June 20, 2015 under Real Estate Law, Washington
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Yes, it is perfectly legal. It is voluntary on the part of banks and other lenders to make loans--no law requires them to do so. It being voluntary, they are free to put restrictions on lending, and to require any amount, kind, or level of information or documentation that they want before extending the loan. If you or the person providing the gift does not want to disclose this information, that is your right--and it is the lender's right to then say that your aplication is denied and you are not getting the loan.
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