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Agree with Silverfall. Respond very politely that you can understand that in today's climate the seller may have a concern that you indeed have sufficient funds to support your pre-approved financing and that will provide proof of those funds w/i 3 days of a signed contract. Then only show that you have the money needed for down payment, not every bank/financial statement in your personal portfolio.
I confirmed with my agent and the seller wants to see my statements to prove I have the money for the time of closing. Should I show it?
I'm sorry but.. there is a HUGE difference between showing proof of funds to close and showing bank statements. When someone asks for 'proof of funds', that is a letter from the bank where you have the funds or if you have them in escrow somewhere, then a letter from them. If it is in a 401k or something similar, then you get a letter from the fund stating you have funds that are able to be released to you in such and such amount (whatever you need to get the deal done). Other than that, the seller isn't entitled to anything else.
I agree with palmcoasting, best to just get a letter from your bank/institution confirming you have the necessary funds. Next best is to provide just enough statements to show sufficient funds and no more. Blank out any confidential account numbers etc. This is typical to provide for an all cash purchase, unusual for lender financing.
I agree with palmcoasting and rjrcm. In my area, it is fairly normal for a seller to ask for something like this on an all cash deal, but not on a financed deal. If they want something, I would get either your lender or your banker or accountant to write a statement that they are familiar with your personal financial situation and know that you have sufficient funds to do this transaction.
A seller has no right to see your bank statement. Proof of funds is sufficient. There is nothing that says you even have to have your money IN a bank, to HAVE a bank statement. Maybe you just have that much cash in your mattress.
I would just write a clause in the contract that you are willing to show proof of funds within 3 days after mutual acceptance of the offer. Their concern is valid, but I don't believe in showing anyone financial statements until you have an agreed upon contract.
I agree with this.
Pre-approval is a loose term. Sometimes it means a lender ran a credit report. Other times it means the lender verified income and assets. Regardless, all pre-approvals contain contingencies, including verification of sufficient funds to close. Having a pre-approval letter does not guarantee the sale will close.
Some of you think that showing some sort of proof of funds is OK. I don't know much about real estate transactions, but it just doesn't make sense to me. Do lots of buyers lie to their lenders about the money they have available for a down-payment or something?
Some of you think that showing some sort of proof of funds is OK. I don't know much about real estate transactions, but it just doesn't make sense to me. Do lots of buyers lie to their lenders about the money they have available for a down-payment or something?
I wouldn't provide any proof of funds until the offer has been accepted or at least countered to include that term in the written contract. It can be made as part of a written counter-offer by the seller and once the buyer signs counter and provides "proof" along with earnest $, they are officially "under contract".
The seller just doesn't want to waste time with someone who is over reaching or may be cutting it really close only to get turned down by the bank at the last minute (this is my guess anyway), so I totally agree with the others, just offer proof of funds from your bank for the amount that it would take to close (down payment, closing costs, etc).
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