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.
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.
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:
â€“ clearly identify the borrower as the account holder,
â€“ include the account number,
â€“ include the time period covered by the statement,
â€“ include all deposits and withdrawal transactions (for depository accounts),
â€“ include all purchase and sale transactions (for financial portfolio accounts), and
â€“ 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.
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.
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,
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.
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.
Lance King/Owner-Managing Broker
Prudential CA Realty
Serving the Greater San Francisco Bay Area
Just a thought, but let me know if you have questions or need help.
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.
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.
Manzar D. Azari, MBA, Broker, Realtor
The Azari Group Real Estate, Inc.
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.
415 860 07675
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.
(RA) MBA, e-PRO, REALTORÂ®
East Oahu Realty