Buying a Short Sale? You need proof of funds!
With so many short sales around it's hard these days to NOT find your dreamhome. For example, you can find a fairly new 3 bedroom home in a nice neighborhood in Sebring for around $100,000. Amenities include tennis courts, community pool, 2 Championship Golf Courses, biking/hiking trails, community-fire department, community-security force, clubhouse.

As you probably already know, the seller's lender must approve the sale because the sale price is less than the seller's mortgage pay off - a short sale in a nutshell. Along with your offer, you are asked to submit proof of funds. With a cash-offer, it should be a bank statement (not just a letter) showing that you have sufficient cash funds available to close on the transaction. If you are to finance the purchase of your short sale, you are asked to provide a pre-approval letter from your lender. A pre-approval letter is slightly better than just a pre-qualification. So if you have a pre-qualification, go the extra mile and get pre-approval to make your offer a stronger offer.

Why does the seller's lender require proof of funds? If the lender does consider your offer, they want to make sure you are financially able to complete the purchase. To save time and avoid unnecessary hassle, be sure to have your proof of funds ready to submit with your short sale offer, not weeks later. The lender might not be willing to wait around and disregard your offer.

We hope this article about "Buying a short sale? You need proof of funds!" was helpful to you. If you would like more information about short sales available in Highlands County, drop us a line!

This article was originally posted on Highlands County Talk Blog