If your client is going to receive a "gift" from a family member for a down payment or closing costs, it is not advisable to have the "gift funds" deposited into your client's bank account. It is far better and easier to have the gift funds deposited directly to escrow. The gifting party should just hang on to his or her funds until you are in escrow and at that time he or she should deposit the gift funds into escrow. The reason is that lenders require a much more complete and exacting "paper trail" if and when gift funds get deposited into a borrower's account instead of directly to escrow. Lenders prefer to see the funds go directly to escrow. Gift funds do not need to "season" in the borrower's account.
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