First Reliance Bank has included the documentation of family gifts in a six-step guide to preparing for a mortgage application. The guide, published on June 8, 2026, says borrowers using gift funds should be ready to provide a gift letter and evidence of the transfer.

The bank places those records alongside recent pay slips, W-2 forms or tax returns, bank statements and evidence of other income or assets. It identifies tax returns from the previous two years as particularly relevant for self-employed applicants. The documentation needed for an individual loan remains subject to the applicable programme and underwriting requirements.

The guide’s six areas are reviewing credit, establishing a budget, saving for the down payment and closing costs, gathering financial documents, avoiding major financial changes and researching loan types. In its discussion of credit reports, First Reliance recommends checking account information and addressing errors or signs of fraud before applying.

For budgeting, the bank uses housing costs of around 25% to 35% of gross monthly income as a rule of thumb, rather than a mortgage approval threshold. It says the calculation should include property taxes, insurance, any homeowners’ association charges and maintenance, and notes that the amount a borrower qualifies for may differ from a comfortable household budget.

First Reliance also describes closing costs of roughly 2% to 5% of the purchase price as a typical planning range. Its guide distinguishes those costs from the down payment and encourages applicants to consider the cash they will have available after completion.

The bank warns that new borrowing, such as a car loan or a large credit-card purchase, can prompt further underwriting work before a mortgage is funded. It closes by directing applicants to compare conventional, FHA, VA and USDA options according to their circumstances. The guide states that loans remain subject to investor guidelines and credit and underwriting approval.