U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-23-2012, 04:33 PM
 
396 posts, read 1,329,848 times
Reputation: 295

Advertisements

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.
Reply With Quote Quick reply to this message

 
Old 12-23-2012, 04:39 PM
 
Location: Cary, NC
30,103 posts, read 52,818,547 times
Reputation: 28303
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.
Reply With Quote Quick reply to this message
 
Old 12-23-2012, 04:45 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 12,360,147 times
Reputation: 3807
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.
Reply With Quote Quick reply to this message
 
Old 12-23-2012, 04:50 PM
 
Location: Austin
6,909 posts, read 16,151,892 times
Reputation: 8994
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.
Reply With Quote Quick reply to this message
 
Old 12-23-2012, 05:01 PM
 
396 posts, read 1,329,848 times
Reputation: 295
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.
Reply With Quote Quick reply to this message
 
Old 12-23-2012, 05:06 PM
Status: "C'est la Vie. C'est la Guerre." (set 13 days ago)
 
Location: The Triad (NC)
25,125 posts, read 54,310,255 times
Reputation: 26020
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.
Reply With Quote Quick reply to this message
 
Old 12-23-2012, 05:12 PM
 
Location: Cary, NC
30,103 posts, read 52,818,547 times
Reputation: 28303
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.
Reply With Quote Quick reply to this message
 
Old 12-23-2012, 05:22 PM
 
Location: NJ
17,579 posts, read 37,011,438 times
Reputation: 16034
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?
Reply With Quote Quick reply to this message
 
Old 12-23-2012, 05:28 PM
 
Location: Cary, NC
30,103 posts, read 52,818,547 times
Reputation: 28303
"Adequate" means "adequate." "Not enough" would be "inadequate."

mj
Reply With Quote Quick reply to this message
 
Old 12-23-2012, 05:45 PM
 
Location: NJ
17,579 posts, read 37,011,438 times
Reputation: 16034
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.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or
Similar Threads

All times are GMT -6. The time now is 04:11 AM.

© 2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top