Sellers generally require proof of funds from a home buyer when the buyer seeks to acquire a mortgage. Most sellers typically want to see evidence that the buyer has actual funds as a downpayment before agreeing to sell to the buyer. Usually, a preapproval letter isn’t enough, and a buyer’s word is most definitely not adequate.
The reason sellers generally always demand a form of proof of funds from buyers is because a listing agent has probably advised the seller to the keep the house in the market until proof of funds is received from the buyer.
If a buyer has collected the money by himself without depositing it in a bank, it might be challenging to prove that the buyer has money for the transaction. Additionally, depositing this money immediately into the bank would be an issue as well. Depositing cash over 10,000 in a single instance is, by federal laws, reported to the government due to suspicion.
Any form of proof of the funds (Preferably a document with an official letterhead from the institution that the cash resides in) would generally require the following items:
• The date.
• The name of the account holder.
• The balance of the money on deposit.
Even if the verification of the cash is to prove the buyer has readied a down payment or has all the money necessary to avoid getting a mortgage, the process is generally the same. The buyer would need to produce the mentioned document for assurance.
When seeking to purchase something as significant as a house, the necessary funds should be readily available to make sure a clean purchase is made. If an individual wants to acquire a loan for this purchase, seeking the right Franklin private money lenders to ensure finances are satisfied is essential.
BridgeWell Capital is a private money lending organization with the most trusted name in the industry. Companies can benefit from the lowest down payments and incredibly fast funding and approval to receive finances through hassle free procedures.