I need to Submit a Bank Statement for My Pre-Approval to Buy an REO
A recent buyer asked: I need to Submit a Bank Statement for My Pre-Approval to Buy an REO. Can I download a copy of my bank statement from the Internet?
You likely have come across MLS listings where you must provide a pre-approval from the REO lender's requested provider to include with your offer. No surprise that it is someone from the bank who is the REO lender.
Never fear, this is often easy, and fairly quick to do over the phone or via email, even if you have another written pre-approval from YOUR preferred lender.
The REO bank wants to feel comfortable, based on their particular criteria, that you are qualified. So, first of all, don't be offended. This is more common than not. It doesn't mean you are not a qualified buyer. They just want to do their own due diligence. And heaven knows we have seen some pretty bogus pre-approvals in the last few years.
My advice? Even if the listing does not specify a proof of funds (POF), I always include it on behalf of my buyer clients. That may be the bank statement or some other savings or investment account. It makes your offer stronger if the bank can see that you HAVE the money needed.
One thing to note. Many times when you go to print out your bank statement from your on-line account the printout will not show your names on the statement. While this is pretty common, this is a BIG problem, and in all likelihood the bank will not accept it. They need to have something in hand that documents the name of the bank, the buyer names, along with the amount of money in the account.
You may have to resort to making a copy of the statement you receive in the mail, or asking your bank to provide that to you. In my experience getting something from the bank can take a day or so if you are one of many who no longer get printed bank statements. So plan ahead.