Home Buying in 94114>Question Details

Linda, Home Buyer in 94114

I am purchasing a home with cash and I was asked to provide proof of funds. I am uncomfortable with showing a bank statement. Is there another way?

Asked by Linda, 94114 Wed Feb 22, 2012

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43
Just get your bank statement with all the pages, even the blank pages, cross all but the last 4 digets of the account and send give that to you agent to send over with your offer.

Good Luck!
3 votes Thank Flag Link Tue Mar 6, 2012
I am purchasing a home with cash and was asked to provide proof of funds. They want me to provide a bank statement of all the money in my account no just the money to purchase the house/upgrades and I am extremely uncomfortable and feel as though my rights are being violated. Nowhere in their brochure does it say that cash buyers must have a credit score of a certain number. When I visited another community right down the street they actually had it in there brochure for all to see that you must have a credit score of 740. I have agreed to have my bank write a letter confirming that I have the necessary funds to purchase this house but I refuse to give them the total in my account. My agent and I were advised to go to there qualification website on-line and fill out the information to qualify but when my agent went on their website they also wanted to check my credit information. I was also asked to furnish this information before I even had an opportunity to view the models and refused because I did not want to furnish my financial information on a house I hadn't seen or agreed to by. If I would have furnished my financial information to every developer in town before even looking at the house my information would be all over town. Someone needs to revamp the way these developers are requesting your confidential information before you have even decide to purchase. There have been to many breaches of peoples confidential information and I feel this process is not necessary unless you have decided to purchase a home. Their request to verify all my finances in my account and check my credit as a cash buyer makes me feel like I'm being singled out and is an invasion of my confidentiality and privacy. What rights does the cash buyer have?
1 vote Thank Flag Link Fri Apr 1, 2016
That is outrageous. I totally agree. Your problem is that you are dealing with a corporation and a "community" (HOA?), instead of homes being sold by individuals. But I am refusing to provide the amount of ALL the cash I have...that gives the seller a bargaining advantage. It's none of their business. My bank says to call and req. a verif. of funds when I have the AMOUNT I need to verify, and they'll put the letter in pdf in my account (takes one business day), for me to download & send to anyone who needs it. If they won't take that....sell to someone else. That's what I will be providing, which is a real verification of funds needed to buy that house. I also won't be putting the address of the house in it. That makes no difference. If my offer is rejected, I can use the same verif. to make an offer on another house.

I just sold my house for cash. I required a higher earnest money amount, but no verif. of funds. What would the buyer gain by offering something he doesn't have?
Flag Thu May 26, 2016
There is an app (desktop and mobile) called Certified Proof of Funds. You set up an account, then you can add one or multiple accounts and send a certificate verifying the person and the amount of funds required for the transaction. There is no way to manipulate this information. It pulls data from your accounts and gives you real time Proof of Funds. http://certifiedproofoffunds.com/
1 vote Thank Flag Link Fri Jan 1, 2016
You could ask that your agent show your bank statement to the listing agent to verify balances and then returned to you with no copies made. (Make sure to white out all account information first.) Or you could ask if the seller would be OK with a letter from your bank stating the available balance in the account.
1 vote Thank Flag Link Tue Jul 21, 2015
Well this post is 2 years old, but it's still a common question, so here's a quick answer anyway:

Having a letter from your bank that states you have sufficient funds for the cash purchase should be sufficient for most sellers and listing agents. Make sure your bank includes your name, the property address, and offer amount in the letter, and that is signed from a bank manager or someone with the authority to demonstrate you have the funds needed. I've used this type of letter in several all-cash offers in the past, and never had an issue with it.

Alternatively, you can black out any information on your bank statement that you're uncomfortable sharing.
1 vote Thank Flag Link Sun Sep 28, 2014
Yes, you can have your bank write a letter stating that the funds are available. A listing agent just needs to be able to confirm with the Seller that you the buyer do have the funds available and they can confidently move forward with the deal.
0 votes Thank Flag Link Fri Jan 15, 2016
Hi Linda,

Often the seller would like to see that the funds are actually there, before accepting an offer and going pending.

Kind regards,

Arpad
0 votes Thank Flag Link Thu Nov 19, 2015
As a listing agent we have to be able to prove to our clients that the offer they are accepting is legit. Proving that you have the cash to afford the sale is the same a showing a loan approval from a bank lender. It seems personal but it's just part of the transaction that needs to be done. You either need to provide a bank statement showing their is enough funds to cover the sale or get a letter from your bank verifying there are enough funds available to cover the sale. Black out any account information on your bank statement.
0 votes Thank Flag Link Fri Nov 13, 2015
It all depends on the lender you are dealing with. some accept blacked out statements. our company can provide bank statements fresh within 30 days or letter for 1% of total of bank statement. Maybe something like that which is not yours you may feel more comfortable.
0 votes Thank Flag Link Tue Nov 3, 2015
I agree with the posters below who said to get a letter from the bank on their letterhead stating that there are more than enough cash assets to purchase the home. Include a contact name and phone number at the bank for the seller or seller's agent to verify. For privacy reasons they can't tell how much is in there exactly, but they can say yes or no if there is currently more than enough to purchase the property.
0 votes Thank Flag Link Tue Feb 24, 2015
You can't be upset that the seller requires proof of funds. They will be taking their home off the market while under contract and need some type of proof that the buyers can purchase their home. Usually a prequalification letter takes care of this issue, however, with a cash deal you either need to show the bank statement or contact your bank personnel, they can most likely have a document saying you have the funds and have it notarized.
0 votes Thank Flag Link Tue Feb 24, 2015
You can get a letter from your bank stating that you have the money available to support your offer price. Signed and dated.
0 votes Thank Flag Link Tue Feb 17, 2015
I have actually had my buyer's financial planner (or Bank rep) write a letter on bank letter head stating that they have more than enough cash assets to purchase the subject property. With that they invite the listing agent to contact them directly should they have additional questions...it worked!
0 votes Thank Flag Link Fri Sep 12, 2014
Everybody is missing the fact that this buyer is using CASH so asking her lender or FANNIE MAE rules aren't the issue here. She wants (wanted) to know what she can do to provide proof of funds for a CASH purchase.

She needs to get her statements from the accounts where she's getting the cash. They'll have her name on them. Cross out COMPLETELY the account number. Nobody needs that. With some accounts it's only one page, like a brokerage account or a pension fund. With checking accounts it will be more. Cross out EVERYTHING but the balance. Use a Sharpie.Then make a copy and give to the seller or his or her listing agent.

It's up to the seller (and the listing agent) what the seller will accept as proof. It's NOT the same as a financed purchase.
0 votes Thank Flag Link Thu Oct 24, 2013
I cannot speak about having an official letter from the bank stating that the funds are there. I do know that Fannie Mae requires all bank account information (Part B, Origination Through Closing,
Subpart 3, Underwriting Borrowers , Chapter 4, Asset Assessment, Verification of Depository Assets) :

Copies of bank statements or investment portfolio statements. The statements must cover
account activity for the most recent two-month period (or, if account information is reported
on a quarterly basis, for the most recent quarter). The statements must:
– clearly identify the borrower as the account holder,
– include the account number,
– include the time period covered by the statement,
– include all deposits and withdrawal transactions (for depository accounts),
– include all purchase and sale transactions (for financial portfolio accounts), and
– include the ending account balance.

I really do not like this, but it appears it is done day in and day out with (hopefully) no problems. The fact is that if you do not like this request, there ARE other means of verifying funds. This is probably just the easiest and accepted method.

Good luck.
0 votes Thank Flag Link Thu Aug 9, 2012
You can have your bank manager write a letter confirming funds are available. Obviously make sure date and phone number are included. But I am sure you bank has done this for other customers as most people are uncomfortable showing a bank statement.
0 votes Thank Flag Link Fri Mar 9, 2012
Get a bank check in the amount needed. That should satisfy them
0 votes Thank Flag Link Mon Mar 5, 2012
You could ask that your agent show your bank statement to the listing agent to verify balances and then returned to you with no copies made. (Make sure to white out all account information first.) Or you could ask if the seller would be OK with a letter from your bank stating the available balance in the account.
0 votes Thank Flag Link Sun Mar 4, 2012
Either a letter from your bank that states that you have the cash, or you can provide a bank statement but be sure to white out acct. no and SS number. I prefer my clients provide a bank letter.
0 votes Thank Flag Link Sat Mar 3, 2012
You can always ask your lender for a letter stating that you have the resources that are needed to complete the transaction
0 votes Thank Flag Link Sat Mar 3, 2012
You can have an officer of the bank draft a letter stating you have funds to cover the purchase. Sometimes that works.
0 votes Thank Flag Link Thu Mar 1, 2012
Showing a bank statement after your offer has been accepted isn't an unreasonable request. If you were getting a mortgage you would have to show a pre-approval letter from a lender, with a cash offer it's providing proof of sufficent funds available.

You could ask your bank or portfolio manager to write a letter on offical letter head stating you have siufficient funds available to purchase and the Sellers may accept this as satisfactory evidence.

Good Luck.
0 votes Thank Flag Link Thu Mar 1, 2012
Hi Linda,

When you'll be presenting your offer to the seller, and suppose there are other buyers on the table, the seller needs to make sure that you can pay should they accept your offer. The same goes with buyers who are financing their purchase via a loan, the sellers prefer to see a pre-qualification or pre-approval letter.

It's nothing personal and you can cover your account number if you want. As long as they can see that the account is under your name and that there is sufficient funds.

Good luck and please let me know if you need assistance,

Best regards
Mimi
0 votes Thank Flag Link Wed Feb 29, 2012
Sorry you are uncomfortable with showing a bank statement, but I would be more comfortable as would Homeland Security as to knowing where your money is coming from, hence the reason you have to show where your funds are and that they exist! The Real Estate agency can not take your word alone as concrete for a buyer that you have the funds to buy the home. You make the offer it gets accepted, so you have to prove you have the funds and Homeland Security may ask as to where you got the funds.
0 votes Thank Flag Link Wed Feb 29, 2012
The reason it is perfectly normal to have to provide proof of funds is because when you are making a cash offer - you are stating that you do not need to obtain a mortgage. As a cash buyer - you are more valuable since the likelihood of the deal taking place is not tied with your ability to get financing. You can expect to get a better deal compared with buyers who need financing. Proving your funds confirms that the buyer will not try to change the rules in the middle of the game after the lower offer is accepted and state that there is no cash available to buy outright.

Real estate agents and brokers deal with confidential financing information on a regular basis as a part of their daily routines. Let us say that your bank balance greatly exceeds what you are trying to buy the house for. Ask if your bank can issue you a letter stating that your bank balance was at least X number of dollars. Also, see if you can get away with whiting out your account number for privacy reasons. Other than that, the only thing I can suggest is to not make cash offers.
0 votes Thank Flag Link Wed Feb 29, 2012
To be honest, if you have to ask this question in a World Wide Web. Your agent is not worth your money. This is not where this question should be in 1st place. And to the rest of the answers on this question, the immediate and genuine answer should have been: "Talk to the agent's Broker: PERIOD!"
0 votes Thank Flag Link Wed Feb 29, 2012
Great advice below. Showing proof of funds is standard practice. If we're going to commit to opening escrow, you'll need to prove you have the ability to pay for the home, or I'm going to have to find another buyer.

I once had an agent say they needed to see account numbers, which my buyer was not comfortable with. It was a fight, but I eventually won that battle after going to the agents broker and stating it was an unreasonable request.
0 votes Thank Flag Link Wed Feb 29, 2012
The best way to handle this is to white out your account numbers and address if applicable. They basically just want to see your name and amount of savings on a bank's letterhead.
0 votes Thank Flag Link Wed Feb 29, 2012
All good recommendations below and the request for proof of funds is an industry wide customary practice.
0 votes Thank Flag Link Wed Feb 29, 2012
Any good agent will want you to provide proof that you actually have the money. You will run into this problem purchasing a home no matter what you buy. With the accounts blacked out there is nothing they can do. If it is a matter of not wanting them to know how much then open a separate account with the money amount you want to spend on the house. I personally would not except a letter from the bank without seeing the funds.
Web Reference: http://Www.laura4homes.com
0 votes Thank Flag Link Thu Feb 23, 2012
Good Morning,
You have gotten tremendous advice from other professionals already. Congratulations.
Best.
Maria
0 votes Thank Flag Link Thu Feb 23, 2012
Have your bank write a letter to verify funds - on official bank stationary, naturally.
0 votes Thank Flag Link Wed Feb 22, 2012
I always have my clients blacken out the account numbers and social security (if on there.) We have never had a problem. Just make sure to use a strong black pen as mentioned below,

Good luck,
Sally
0 votes Thank Flag Link Wed Feb 22, 2012
It is standard policy to ask for proof of funds on a cash deal, and it makes sense - they want to know you have the money to close the deal. As pointed out below, you can black out any account numbers to avoid giving out private information while still demonstrating you have sufficient money. This is done all the time with no issues.

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
0 votes Thank Flag Link Wed Feb 22, 2012
I have my clients cut off the account number or use a strong black out pen to cover their personal information. Another way is also to have your lender state in the pre approval letter that they have verified funds. Hope this helps.

Jan Maddock
Prudential CA Realty
Serving the Greater San Francisco Bay Area
925-212-2882
0 votes Thank Flag Link Wed Feb 22, 2012
We lenders use a standard Verification of Deposit (VOD) form in cases like these. Once completed by the bank, you can simply black out the account numbers and provide to the seller. The VOD will not show the line-by-line information as would a statement, and it may prevent the need to get someone who is authorized and willing at the bank to write a letter.

Just a thought, but let me know if you have questions or need help.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Wed Feb 22, 2012
You can show a bank statement with your account information blacked out or you can ask the bank for a "proof of funds" letter. Most of them have their own format and may require that you transfer the amount of the funds that they verify into a restricted account for a period of time. For example, their letter might say "We hereby verify that Joe Schmo has $40,000 in our bank. This letter expires in 120 days." During the 120 days the bank may require that you place $40,000 in a CD or account that can only release the money after the letter expires. Ask your bank or wherever you have the money deposited. Good luck!
0 votes Thank Flag Link Wed Feb 22, 2012
You may try going online and adding a new account at your bank. Then transfer only the amount you would like to show into that account. Print and submit your new statement.

Best of luck,

Oggi Kashi - 415.690.3792 direct
Broker Associate, Paragon Real Estate Group CA DRE 01844627
All data from sources deemed reliable but subject to errors and omissions, and not warranted.
Web Reference: http://www.oggikashi.com/
0 votes Thank Flag Link Wed Feb 22, 2012
There is two ways around it: for confidentiality purpose, you can block your bank account number and provide it to your agent ( as long as the account is under your name ). The second way is to ask your financial representative to provide a letter to confirm the cash amount available in your account for the amount of purchase.

Providing the proof of funds for a cash purchase is needed in order to give confidence to the seller that you are qualified for the purchase.
Good luck!

Manzar D. Azari, MBA, Broker, Realtor
Founder/President
The Azari Group Real Estate, Inc.
http://www.theazarigroup.com
0 votes Thank Flag Link Wed Feb 22, 2012
You can always cross out the account number, or provide only the portion of statements that show you have sufficient cash for that particular transaction.

But if you are asking a seller to take his/her property off the market, forsake all other buyers in your favor, it is not unreasonable for the seller to want to know that you are able to perform.

Astrid Lacitis
Keynote Properties
415 860 07675
0 votes Thank Flag Link Wed Feb 22, 2012
Such a letter DOES NOT provide proof that the buyer can perform. After all, I can transfer funds into an account, get the letter stating the funds are available and then transfer the funds out of the account. It proves nothing!
Flag Fri Apr 25, 2014
You have a couple of options: 1. Have your bank issue a letter on the bank's letterhead stating that you have sufficient funds for the purchase, 2. Provide your bank account, but sanitize your account number and other personal information.
0 votes Thank Flag Link Wed Feb 22, 2012
Hi Linda,

Go into one of your bank branches and ask the bank manager to write you a letter stating:
"This member has XX,XXX dollars on deposit in cash or cash equivalent at XYZ Bank."
On letterhead with a phone number and that should do it.

Good luck.
Frank Diaz
(RA) MBA, e-PRO, REALTOR®
East Oahu Realty
http://hawaiihome.biz/
0 votes Thank Flag Link Wed Feb 22, 2012
what if you don't have it in your bank? what if it was in a safty deposit box
Flag Sat Jan 4, 2014
Hi Linda,
Just black out the account number. I do this all the time. As long as your name is visible you should be OK.
Good luck,
0 votes Thank Flag Link Wed Feb 22, 2012
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