One of the most important things required for real estate transaction is the proof of funds that you currently have.
Many real estate agents will be unwilling to work with you if you are unable to provide proof of funds. Providing proof of funds in estate transaction is a form of guarantee that you are capable of paying for both the property and the service that you are going to get. Unfortunate that many people are unaware of these proofs, a reason they are having problems when closing a sale.
As a home buyer, have you noticed that many realtors lay emphasis on how an offer is to be made on a particular property? Some first time home buyers make serious mistakes here by assuming that it all about money. You may find surprised that the individual with the best monetary offer may not get the house.
It is essential you put in a lot of efforts on how to show your proof of funds wherever you intend buying a home. The only physical proof to show that you have the means of paying for a down payment is a proof of funds.
Assuming you have been approved for a loan and a pre-approval letter together with a purchase offer have been submitted to the seller. The property may be put on a pending status by the seller because he desires to work with you towards closing. But if your down payment funds not ready, you will end up wasting the seller’s time.
The intending buyers may give negative interpretation to the fact that the house went from pending to active. The seller may as a result of this find it difficult to find a buyer for the property. Although, this situation doesn’t occur frequently, it is possible.
Below are documents which are often required as proof of funds to buy a home.
🏘What is the Value of my Home?
🏬Statement of account
Some agents demand to see your statement of account so as to see if you have a stable finance.
It is better to fix your statement of account prior to searching for a home. This makes the transaction easier for you.
Remember that you cannot just come up with your last month’s bank statement as a proof of funds. As there is no proof that the money still remains intact as at the time of presenting the document. Your realtor will unlikely accept it. Rather, a print out from the bank on its letter head and dated same day, showing your current balance will be acceptable.
This implies the fund is available to you on the day you make your offer.
Proofs of funds depend on where the money to pay for down payment will come from. Cash buyers pay cash for their down payment. This indicates that the proof of funds can be an online printout from the bank, displaying your account balance. Remember to detach sensitive personal information before attaching it to your purchase offer.
🦋 Latest pay slip
Your latest pay slip is the acceptable proof of your funds which can submit. It shows the source of income to buy the house but it cannot show if your finances are stable or not. Submission of your pay slip will enable you continue with the transaction. Providing at least, three latest pay slips will further prove to the seller that you are capable of purchasing the property.
This proof of fund is intended for people who are yet to have the cash but intend to liquidate some of their assets to pay for down payment. For instance, people having stocks, mutual funds and bonds are non-cash buyers. Such people may present photocopy of pertinent documents. It is important that non-cash buyers be transparent to the seller about when they expect their assets liquidated and be available for down payment.
Visit the bank and request a letter duly signed by the bank representative, stating that there is enough funds in your bank account to buy the home.
In addition, collect a similar letter which will verify the availability of funds via a line of credit or credit card. Request for a credit line account summary printout that reveals your available balance.
Proofs are essential documents you need to have if you want to be successful in real estate transactions.
Prior to embarking on cash payment, ensure you and your estate agent agrees on how they need to see your proof of funds and how soon they will require such proof. With this, you will avoid losing a home you really cherish due to a paperwork problem.
Finally, ensure that you have sufficient proof of funds readily available before you even start looking for a house that you can buy.
Follow the tips above to ensure a good working relationship with your real estate agent. Aside from this, ensure that you hire a reputable real estate company like RL Real Estate Group. With years of experience under their belt, you’re assured of excellent service and a good working relationship all the time. Fill up the contact form here to get started.
If you need help buying a property or have any more questions about how to show proof of funds to buy a house, contact RL Real Estate at 601-212-8431 or at firstname.lastname@example.org. Regan Laughlin and her team of real estate experts would be more than happy to serve you.