Home Buying in 10025>Question Details

Edmart, Home Buyer in 10011

do i need a bank questionnaire to buy if I am paying cash?

Asked by Edmart, 10011 Wed Nov 9, 2011

Help the community by answering this question:


Hi Edmart,

The answer is No! A cash buyer does not need a questionnaire from a bank since a bank is not involved with the transaction. The questionnaire is a requirement of banks not a requirement to purchase a property.

Fortunately there is a good deal of all cash transactions in Manhattan real estate. Banks are not involved. Proof of funds has nothing to do with a bank questionnaire. The questionnaire is based on government rules that banks must follow when financing in coop and condo buildings because the government guarantees and buys the loans with taxpayer money called TARP.

Cash is King! You will be sparred a lot of stress not having to deal with "too big to fail banks" A good buyer's broker can help you leverage the fact that you are a cash buyer with sellers and listing brokers. Good Luck.

I'm very happy to talk to you at any stage of the Real Estate process and can discuss the opportunities in each neighborhood, price point and room count.


Mitchell Hall, Associate Broker
The Corcoran Group
Web Reference: http://nycblogestate.com
1 vote Thank Flag Link Sun Nov 27, 2011
Mitchell Hall, Real Estate Pro in New York, NY
Bank questionnaire is needed only when there is a bank financing. If it is a coop, than your attorney will have to get a building questionnaire from the management company.
0 votes Thank Flag Link Sat Oct 13, 2012
No, bank questionnaires are only for people who are financing the property. You might want to request a disclosure though, for your records.
0 votes Thank Flag Link Fri Nov 11, 2011
Hello Edmart. I agree with Christopher below. The Bank questionaire comes about when someone is financing a purchase. The type of questions range and include things like, how many apartments are sponsor owned, what is the percentage of ownership to rentals, etc. The buildings managing agent usually fills out the form and sends it back to the Bank. This is the only questionaire that comes into play when financing. Your cash purchase makes the questionaire a moot point. Good luck.
0 votes Thank Flag Link Wed Nov 9, 2011
Hi, If I understand your question properly, the bank questionaire is used by the bank when applying for a loan. The coop management must fill it out so the bank can see the owner occupancy to renter ratio, financials, etc. If there is no mortgage then they wouldn't have to fill it out. Otherwise I'm not sure what questionaire you are talking about.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
0 votes Thank Flag Link Wed Nov 9, 2011
If you are purchasing a coop in Manhattan unless it is a no board approval sponsor apartment you will still have to provide a financial statement, proof of income and/or pay stubs, 2 years of Tax returns, proof of bank and investment balances, a credit and perhaps a background check, proof of employment and anything else the Board asks for. NYC real estate purchases are complicated that is why it is usual to have a real estate broker representing a buyer as well as an experienced NYC real estate specialist attorney to review contracts, perform due diligence, arrange for title reports and everything else that may be necessary. A bank may be able to provide you assistance in assembling and certifying the necessary documents and funds.
0 votes Thank Flag Link Wed Nov 9, 2011
If the property is more than $9,999 then you have to account where and how you got the money for the sale
0 votes Thank Flag Link Wed Nov 9, 2011
Proof of funds will be necessary, either a bank letter, or statement; what is your agent and or attorney advising.
0 votes Thank Flag Link Wed Nov 9, 2011
It depends on who is asking for it and why. For example, if the seller is a bank they may need proof of the availability of funds even with a cash buyer in order to sign a sales agreement.
0 votes Thank Flag Link Wed Nov 9, 2011
You generally will not need one but showing proof of purchasing ability to the sellers agent will be necessary.

I highly recommend that even if you are paying cash, that you obtain an appriasl so as not to over pay for the property. You can also ask your buyer broker to do a market analysis on the property to figure out what fair market value is so you can base your offer on that.

If you do not have a buyer broker, I suggest that you get one so you have fair representation.

Jennifer Chiongbian
SVP/ Assoicate Broker
Rutenberg Realty NYC
0 votes Thank Flag Link Wed Nov 9, 2011
Cash is king; you will need a clear title. Happy closing!
0 votes Thank Flag Link Wed Nov 9, 2011
Hi Edmart

Do you mean to ask if you need to fill out the Bank's (lenders) questionnaire or the Co-op/Condo QQ? If there is no Lender there is no Lender QQ to fill out. Rest is up to what the Co-op or Condo ask you to provide to show proof of your Cash.
0 votes Thank Flag Link Wed Nov 9, 2011
Hi Edmart:
It depends on what you are buying, but a financial statement is a great way to ensure that you are the deal that they are choosing with out anyone to steal it from you. You do need to have proof of funds that cover all aspects of the deal including closing costs. This would be for a single family/multi-family or a condo purchase. With co-ops, they are absolutely required.

If you are worried that they may back out and ask for more money once they see your financial background, hold your ground, you are paying what you believe is reasonable and nothing more.

Kelly Killian
Bond New York
I hope that helps,
0 votes Thank Flag Link Wed Nov 9, 2011
Generally if someone is getting a mortgage, they need to show a bank pre-qualification letter. If you are paying cash, it would be reasonable that the seller's agent would want to see proof of funds. Before a seller's agent takes the unit off the market for an accepted offer, they would want some kind of proof that the buyer has the ability to complete the transaction.
I hope you are using a buyer's agent. The sellers all have agents, and you should have a buyer's agent to level the playing field. We streamline your search, negotiate on your behalf, and take you through all the steps, troubleshooting along the way.

Jenet Levy
Halstead Property, LLC
212 381-4268
0 votes Thank Flag Link Wed Nov 9, 2011
You still need to provide basic information about how you intend to pay for the purchase.
Web Reference: http://www.archershomes.com
0 votes Thank Flag Link Wed Nov 9, 2011
Hi Edmart,

If you are paying all cash, you will need proof of funds - i.e. bank statement, letter from your financial institution, etc.

Shanna Rogers
SR Realty
0 votes Thank Flag Link Wed Nov 9, 2011
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