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Can we request (or demand) to see proof of buyer's financing and proof of cash prior to a closing date? Or do we have to go on faith and wait until closing to see if the buyer has all the money?
Can we request (or demand) to see proof of buyer's financing and proof of cash prior to a closing date? Or do we have to go on faith and wait until closing to see if the buyer has all the money?
You should request proof of ability to purchase, whether it's in the form of a mortgage preapproval (not a prequalification, but a preapproval that confirms the borrowers credit and financials have been checked, and that the loan is only contingent upon a satisfactory appraisal) or proof of funds if it's to be a cash deal. Without that proof of ability to purchase, you, as a seller, shouldn't sign off on the contract or stop marketing your property.
As enchanting as the internet is, and as accommodating as agents here on CD try to be, you are asking questions with answers that are very localized.
It sounds like you really need to speak with the managing broker, supervising broker, broker-in-charge, qualifying broker, or whatever title your agent's supervisor carries.
Now, here in North Carolina, we have timelines and requests built into the transaction in the contract. They are negotiable, and can vary from transaction to transaction.
How is West Virginia structured? Your contract will tell you the score.
As enchanting as the internet is, and as accommodating as agents here on CD try to be, you are asking questions with answers that are very localized.
It sounds like you really need to speak with the managing broker, supervising broker, broker-in-charge, qualifying broker, or whatever title your agent's supervisor carries.
Now, here in North Carolina, we have timelines and requests built into the transaction in the contract. They are negotiable, and can vary from transaction to transaction.
How is West Virginia structured? Your contract will tell you the score.
The same thing is true in Maine. Here the Purchase and Sale Agreement spells out when the "made application" letter, when the buyer actually starts the loan process is due to the seller as well as the loan commitment letter is due and if those dates are missed the buyer is in default. Your agent should know those dates cold. Our Purchase and Sale Agreement also gives you and/or your agent the right to contact the buyer's lender to find out the status of their loan.
Typically proof of cash is requested only for an all cash purchase. You should see a pre-approval letter before accepting the offer, and you Realtor should have called and talked to the lender who provided the letter and asked if credit has been pulled, funds verified, W2s provided, or if it's just an "approved based on what the borrower told me" type of letter. The latter is weak.
So you check all this up front, before executing the final contract. It would be unusual to ask after under contract and before closing, though the Realtor should be checking in regularly with the lender to get status updates and make sure any additional underwriting requirements are being tended to.
As enchanting as the internet is, and as accommodating as agents here on CD try to be, you are asking questions with answers that are very localized.
It sounds like you really need to speak with the managing broker, supervising broker, broker-in-charge, qualifying broker, or whatever title your agent's supervisor carries.
Now, here in North Carolina, we have timelines and requests built into the transaction in the contract. They are negotiable, and can vary from transaction to transaction.
How is West Virginia structured? Your contract will tell you the score.
While I agree with the generalism that all real estate is local, Mike, do you really think this issue is handled with any substantial difference from one state to another? Are there locales where it's common to accept a contract for sale without proof that the buyer can perform? And I ask that not being a woiseass, but because I'd genuinely be interested in hearing about such a market and how that difference affects things.
While I agree with the generalism that all real estate is local, Mike, do you really think this issue is handled with any substantial difference from one state to another? Are there locales where it's common to accept a contract for sale without proof that the buyer can perform? And I ask that not being a woiseass, but because I'd genuinely be interested in hearing about such a market and how that difference affects things.
Bill,
I agree with your point.
BUT...
The OP has an agent, has issues with the agent, is in contract with prospect of a missed closing date, and without question needs to kick the whole matter upstairs ASAP rather than blindly surf CityData.
Under those parameters, I would go as far as to say that my responses to the OP are, well, perfect.
Your agent should have gotten that for you prior to accepting a contract. Then your agent should be in constant contact with the buyer's lender to get updates on what stage the financing is in to make sure they are fully approved through underwriting and not still pre-approved.
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perfect.
