When we work with Buyers, we almost always have an initial Buyer Consultation to talk about the home buying process here in Atlanta. We want to learn what is important to you in your new home. And we want you to understand the steps in the home buying process.
If you are searching online for this kind of information, our Intown Atlanta Real Estate Buyers Guide is a perfect place to start and a great resource!
What is a Proof of Funds Letter?
Now the phrase, "proof of funds" will appear on many listings. It can mean that if you plan to pay cash, the letter should be from your bank, indicating you have sufficient funds to close on the purchase, based on the contract sales price plus other expenses that you may be paying.
Proof of funds can also be a pre-approval letter from your lender. As part of the aforementioned Buyes Guide, we talk about getting your pre-approval before we even start shopping for a home.
Currently (January, 2018) we are in a Seller's Market. This means there is less inventory on the market, and the Sellers can be more specific in what they are willing to negotiate in a sale. One of those items is the Financing Contingency in your Purchase and Sale Agreement. (You can read more about the 2018 Georgia Real Estate Contract HERE) They don't want to have their home off market from other potential Buyers while you are still finalizing your financing! Hence, that pre approval letter.
And WHERE you get that pre-approval letter from makes a world of difference. One of our TEAM Lenders, Michelle Hipps with Bank South actually sends the Buyer's "file" through underwriting even BEFORE there is any contract on a property so that can look for any issues the Buyer may have with credit and such!
Getting your Proof of Funds Letter or pre-approval letter is a very important part of the home buying process!