Home Buying in New Jersey>Question Details

Lumiere, Home Buyer in Ridgewood, NJ

Proof of Funds for Cash Offer - Is a bank statement better or letter from bank saying I have enough cash to cover bid price?

Asked by Lumiere, Ridgewood, NJ Wed Jan 12, 2011

Do sellers/listing agents prefer one or the other, or even both? Thanks.

Help the community by answering this question:


Never submit your bank statement unless required. Have your banker draft a letter stating that you have enough liquid funds to cover your offer and closing costs. Try to obtain this letter before you go house hunting. This way you're in a position to submit an offer on the spot if you really want the property. Best of luck and make sure your attorney runs title and title insurance is available if needed.
2 votes Thank Flag Link Wed Jan 12, 2011
I'll take either one, as long as it is current. However, you should check with your agent and see if the sellers' attorney wants one over the other.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Wed Jan 12, 2011
Your bank may charge a fee for issuing a letter of verification. I would submit a bank statement with the account numbers obliterated by marking pen. If the balance is in excess of the amount needed it is o.k. You will need extra funds for closing costs and, perhaps, planned improvements. In addition, you would not be spending every penny in your bank account to buy a house. There are other needs and wants in our lives that cost money. Just because you have the money does not mean that you are willing to spend it on the house.
1 vote Thank Flag Link Wed Jan 12, 2011
Either is acceptable. However, if you provide a bank statement, and the statement shows that you have additional money available, the Seller may want you to pay a higher price than what you offered. You could avoid this issue by providing a letter from the bank instead. Good luck with your purchase.

Warm regards,
Maggie Hawk, REALTOR
Watson Realty Corp.
1 vote Thank Flag Link Wed Jan 12, 2011
We always suggest getting a letter from the bank (usually a manager will need to write it) stating the amount you have in the account. Make sure the amount is what the bid price is!
For more buying and selling tips, please visit http://www.RochesterHomeLocator.com

Salafia Sold Team
0 votes Thank Flag Link Fri Jan 14, 2011
Either usually works rather well, and unless you are not financing the lion's share, except for relo homes, it is not always asked for, so I'd wait on a normal sale until asked. I always ask for it, but many don't. When providing bank statements, it's best not to show you have too much money on reserve. Cross out the account numbers, etc., for privacy, and try to come to the ballpark of what you need to show. Otherwise, you could dilute your negotiating power. A letter is usually great, and I've never had that turned down either. Just be sure it is signed and bank officer is accessible and has a direct line on it. I can't tell you how many times they send a letter to me and it's a Word document without a signature. Hope this helps.
Web Reference: http://marieyoung.net
0 votes Thank Flag Link Fri Jan 14, 2011
I agree that handing over bank statements you need to be careful and remove the account numbers and such. I just did a deal where the buyer showed considerably more than what was required to purchase the home. It made my client the strongest of multiple offers and we got the home for a fair price. If you are concerned about the statements, again as someone earlier said have the attorneys handle them so you are completely protected.

Hope this helps,
Marc Pollak
Keller Williams
0 votes Thank Flag Link Fri Jan 14, 2011
Concur that if bank statements are shared, personal information such as account numbers should be whited out. I have received this as well as letters from the bank, the attorney, or a mortgage pro. What the seller is looking for is verification from an objective source who has proof of the existence and availability of funds to close.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Thu Jan 13, 2011
No One should hand over their Bank Statements sound to me that most of the agents here are Sellers Agent there are NO rules that state this a letter from your Bank stating you have enough funds to close on your offer.
I woul dnever let my Buyer Client hand them over NO matter what No has the right to ask for them and if you are paying Cash you certainly do not need to get a mortgage rep they are not in the deal if it is cash. Just a letter from your bank is plenty as long as the bank stamp is on the letter.

Don't let Seller agents push you around
0 votes Thank Flag Link Wed Jan 12, 2011
I actually have my cash buyers speak with my mortgage rep anyway. Then I have the mortgage rep - after verifying funds - create a pre-approval letter stating that the buyer is qualifed to purchase the home. That leaves me, the other agent and the seller out of the details.

Good luck!
0 votes Thank Flag Link Wed Jan 12, 2011
Ask the agent (or seller if no agent) what they require as proof of funds and provide that to them. As John suggests, white out or cross out the account number on a bank statement.
0 votes Thank Flag Link Wed Jan 12, 2011
We recommend both as well.
Web Reference: http://HousingFortWayne.com
0 votes Thank Flag Link Wed Jan 12, 2011
We recommend both HOWEVER it can take bankers a few days publish a letter, then we instruct our buyers go with the b.statement submit the offer.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Wed Jan 12, 2011
I think a current bank statement is better but, a letter from the bank will work too.
0 votes Thank Flag Link Wed Jan 12, 2011
Both are acceptable, however in my opinion it is best to have a most recent letter from the bank stating the exact amount needed for the offer is available in your bank account. You do not want the seller knowing how much more is available, in case they want to ask for more.
0 votes Thank Flag Link Wed Jan 12, 2011

As a Buyers Broker I always instruct my clients never hand over your bank statements to anyone if you have more then needed it makes it harder to bring down the price from asking. I always tell them just get a letter from you bank stating that you have the funds to pruchase the property at the price you are offering. In addition you do not want anyone to have your account numbers I don't care who it is if the are not a bank or mortgage company. Never give me then needed.

P.s. There is nothing that says you have to produce anything it just a good way to make a deal. It's like having and ace in the whole when a seller can see you are for real I use the letters all of the time.

Hope this helps

Tim Robbins Exclusive Buyers Broker

Better Homes Realty
0 votes Thank Flag Link Wed Jan 12, 2011
Both should be fine as long as current information. Best of Luck to you.
Web Reference: http://www.realestatelu.com
0 votes Thank Flag Link Wed Jan 12, 2011
What is your agent suggesting...consider having both at hand just in case....
0 votes Thank Flag Link Wed Jan 12, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer