In order to process a transaction, there needs to be proof that the Buyer has the funds to close. Barbara-Jo lays out some of the reasons below.
We recently had to cancel an offer because the Buyers refused to provide proof of funds to the short sale negotiator.
The bank would not negotiate the offer without the fund verification. The Buyer's felt that putting a substantial deposit down was enough. Even though substantial was not the full purchase price.
No problem, we had them sign a cancelation and sold it again the next day. Joy
What does proof of funds mean? How do I supply that information?
Proof of funds means that you plan on paying for your purchase of a home or condo with cash. While you may have plenty of money in the bank and paying cash is not a problem, the seller wants proof that you have the funds. The simplest way to provide proof of funds is to print out a copy of your bank statement (or statement from wherever you have these funds) and black out the account number. You want to be sure your name and address are on the printout, as well as the date. It needs to be current (within the last 30 days).
This information needs to be supplied to your Realtor before you begin looking at properties. Why? Well, although your Realtor has told you that you need to supply proof of funds, unless that proof has already been supplied, we cannot move forward making an offer.
But you are only looking? While that may be the case, if you find a property you are indeed interested in, an offer cannot be submitted unless proof of funds (or if being financed, a mortgage preapproval) are attached to the offer. Sellers do not want to see offers without proof that the transaction can actually make it to the closing table.
When your Realtor asks for proof of funds or a mortgage preapproval, know that it must be supplied up front. Otherwise, most Realtors will not take you out to see listings. It is considered a waste of everyone's time.
Buying or Selling - - Call Barbara-Jo for all of your real estate needs! - - 727-512-0910
Ich Spreche Deutsch!!!
Barbara-Jo Roberts Berberi, MA
Charles Rutenberg Realty
Serving the Greater Palm Harbor Florida Area, including Crystal Beach, Dunedin & Tarpon Springs Florida
Waterfront condos & homes
relocation, investment, upsizing, downsizing
Your Real Estate Specialist
If you are thinking of purchasing in the Palm Harbor, Crystal Beach, Safety Harbor, Dunedin, Tarpon Springs area or along our pristine Gulf Beaches, give me a call! With years of experience in the local real estate market, I am here to assist you in making one of the most important purchases of your life! Give me a call today! Find out for yourself why living along the Gulf Coast is indeed living in Paradise!