Yes Cash Buyers Need to Show Proof of Funds Too
Every now and then I get a call from a "prospective" buyer that wants information on one of my listings and at some point, I'll ask if they have been pre-approved by a lender. An answer that I sometimes get with such boastfulness and authority is that "Oh I'm paying with cash." My response is usually "That's great and will save some time. But you'll still need to provide proof that you have the funds to pay for a property that you're interested in purchasing."
Cash Buyers Need to Pre-Qualify As Well
Although cash buyers do not have to fill out a loan application and go through the loan approval process, they still need to be pre-qualified and the way to do that is to provide proof of funds. There are a couple of ways to do that:
- The cash buyer can get a letter from their bank, written on official company letterhead, stating that the prospective buyer has sufficient funds on account to cover the cost of the purchase.
- The cash buyer can also provide an official printout or bank statements showing that the funds are actually in the account.
That makes sense right? Well, there's another aspect that we agents sometimes have to deal with and that is the money in the mattress claim. Slightly overexaggerating about the mattress part, but we do hear "oh I don't keep my money in the bank" and as it turns out, they don't keep it anywhere else whereby it can be legitimately verified.
But I Still Want to See View Your Listing
Unfortunately, I won't be able to help this cash buyer out unless they can give me something more submstantial and concrete to work with other than having me over to their place and showing me the "proverbial money in the mattress" in which case I may want to take Uncle Vinny with me right Alan May?