Home Buying in Connersville>Question Details

Heather N Pi…, Other/Just Looking in Midland, MI

What if I pay cash ? Do i have to a preapproval letter?

Asked by Heather N Pickens, Midland, MI Fri Jul 20, 2007

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I agree with Wayne. Cash will certainly make it easier for you to impress the seller. Just make sure to include a copy of your bank statements (verification of funds) with your bank account whited out.

Irina
2 votes Thank Flag Link Fri Jul 20, 2007
Yes, if you are doing a cash sale, be prepared to be asked to prove funds and availability of funds. There are many ways to do this. If you are not comfortable showing all of your assets, have the bank or institution give you a letter stating that the funds are there and are readily available.
1 vote Thank Flag Link Mon Jul 23, 2007
The letter that "pre-approves" is the letter that comes from the financial institution holding your funds.... unless of course, it's under the mattress... Mr. Sealy or Mrs. Simmons can't exactly provide a written statement! Smile! Your cash is good here!
1 vote Thank Flag Link Mon Jul 23, 2007
With the initial presentation of an offer, I have used a letter from a CPA or Bank stating the buyer was in possession of funds in the amount necessary to make the purchase. The offer stated that verification of funds available would be provided within 24 or 48 hours of an accepted offer. This allowed my buyers to make credible offers while retaining control of confidential data.
1 vote Thank Flag Link Fri Jul 20, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
You only need a preapproval letter if you are getting a loan. With a cask deal a letter from your bank or CPA is fine. A seller doesn't need to know how much you have, just that you have it. Remember that unless the seller is going to carry the loan, every deal is a cash deal.
0 votes Thank Flag Link Tue Jul 24, 2007
Hi There,

Most sellers want to see a letter from a buyers’ bank stating that they hold a balance of at least the amount of the purchase price, and these funds are “liquid and can be drawn from at anytime”. It’s great that you have that ability, but if you need any “tax shelters” you may want to consider mortgaging at least a portion of the purchase price, as this will allow you to deduct the closing costs, points (if any), interest and PMI on the loan.

Melissa Mancini, Realtor, CBR, GRI
Web Reference: http://MelissaBMancini.com
0 votes Thank Flag Link Mon Jul 23, 2007
We just like proof of funds. If you are paying cash then we like to see where it is. If you don't want to reveal all your cash then create a savings account as a branch off the main account. Move the funds in an out of that portion of the account to match your offer.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Jul 20, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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You will need verification of funds...which could be a bank statement, stock statement, etc. If funds are locked in a 401K or something similar, be prepared to assure the seller's that the money is easily accessible. This worries seller's sometimes.
0 votes Thank Flag Link Fri Jul 20, 2007
No. However, a seller might expect a large deposit plus verification of funds.
0 votes Thank Flag Link Fri Jul 20, 2007
Herman Chang, Real Estate Pro in Palm Beach Gardens, FL
MVP'08
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Cash is wonderful, but how does the buyer know it is really there? No "Pre-qiualification" needed, but a savy seller will want a verification of funds from the institution holding them.
0 votes Thank Flag Link Fri Jul 20, 2007
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