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Old 12-23-2012, 04:33 PM
 
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Iím going to be a first-time house buyer in 2013. I will be paying cash (the full funds are liquid in my bank savings account).

One question: How do buyers prove they have the funds available when making a cash offer on a house? Thanks.
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Old 12-23-2012, 04:39 PM
 
Location: Cary, NC
31,306 posts, read 54,788,279 times
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Quote:
Originally Posted by Sky-Blue View Post
I’m going to be a first-time house buyer in 2013. I will be paying cash (the full funds are liquid in my bank savings account).

One question: How do buyers prove they have the funds available when making a cash offer on a house? Thanks.
You can either show a recent bank statement or have your banker provide a letter stating that you have adequate funds to support the offer you are making.

I like the latter, rather than parading your statement around and trying to redact information from view.
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Old 12-23-2012, 04:45 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 12,602,927 times
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Quote:
Originally Posted by MikeJaquish View Post
You can either show a recent bank statement or have your banker provide a letter stating that you have adequate funds to support the offer you are making.

I like the latter, rather than parading your statement around and trying to redact information from view.
I agree with Mike. The bank should be happy to write the letter for you.
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Old 12-23-2012, 04:50 PM
 
Location: Austin
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I like to see the actual funds in a statement. The account number can be blacked out. Too many times, the funds ended up actually being tied in a money market and not liquid, or they were a relative's funds, etc. I like to see the statement with the buyers' names on the statement showing it's cash.
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Old 12-23-2012, 05:01 PM
 
396 posts, read 1,393,135 times
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A recent bank statement figure can be forged by any teenager with a scanner or photocopier. That's why I think some sellers might be leery of a buyer's bank statement. The bank letter would be more authentic, especially if it is in the exact format that mortgage officers provide to other clients.

However, it seems an odd request to ask of the bank employee who opens savings accounts to write me a letter to prove I have money in my account. Yet, it seems like people buy houses with cash on a regular basis, so it probably isn't unfamiliar. I'll have to contact my bank branch tomorrow.

On a traditional mortgage letter, the bank doesn't list the exact amount available to protect the buyer's ability to negotiate price. Hopefully my bank won't list my exact balance either.
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Old 12-23-2012, 05:06 PM
 
Location: The Triad (NC)
26,419 posts, read 57,034,291 times
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Quote:
Originally Posted by Sky-Blue View Post
Iím going to be a first-time house buyer in 2013.
I will be paying cash...

One question:...
Just one? OK.

Do you have any idea how unusual and (with current low interest rates) how impractical this is?
I'll assume that you have reasons for your method and hope that assumption isn't like most of them.
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Old 12-23-2012, 05:12 PM
 
Location: Cary, NC
31,306 posts, read 54,788,279 times
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Quote:
Originally Posted by Sky-Blue View Post
A recent bank statement figure can be forged by any teenager with a scanner or photocopier. That's why I think some sellers might be leery of a buyer's bank statement. The bank letter would be more authentic, especially if it is in the exact format that mortgage officers provide to other clients.

However, it seems an odd request to ask of the bank employee who opens savings accounts to write me a letter to prove I have money in my account. Yet, it seems like people buy houses with cash on a regular basis, so it probably isn't unfamiliar. I'll have to contact my bank branch tomorrow.

On a traditional mortgage letter, the bank doesn't list the exact amount available to protect the buyer's ability to negotiate price. Hopefully my bank won't list my exact balance either.

"Adequate funds" would not specify a balance.

And this is a common service you should expect from a banker.
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Old 12-23-2012, 05:22 PM
 
Location: NJ
17,579 posts, read 38,001,996 times
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So a bank statement can be forged, but not a letter? And as a seller I better see something that indicates the money is as much as the offer. If the only thing the letter states is "adequate" how does the seller know what that means?
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Old 12-23-2012, 05:28 PM
 
Location: Cary, NC
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"Adequate" means "adequate." "Not enough" would be "inadequate."

mj
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Old 12-23-2012, 05:45 PM
 
Location: NJ
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Quote:
Originally Posted by MikeJaquish View Post
"Adequate" means "adequate." "Not enough" would be "inadequate."

mj
If the letter doesn't have any amount on it how does the seller know what amount the buyer told the bank. If I have 100K in the bank and tell them I am making an offer on a 100K house that is adequate. If the offer though is actually for 200K that is not.
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