I am a cash buyer. However the broker has asked for a letter of approval. why would I need such a letter if I am paying cash?

Asked by Diana Ezra, West Hollywood, CA Wed Jan 16, 2013

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Cindy Davis’ answer
Cindy Davis, Agent, San Diego, CA
Wed Jan 16, 2013
Typically, in my city, when there's a cash buyer, we have to show 'proof of funds.' Print off an account balance that shows your name, cross out any sensitive account informationm and send that to the listing agent. That should do it.
0 votes
Jennifer Fiv…, Agent, Red Hook, NY
Wed Jan 16, 2013
Orly although you stated you are a cash buyer the agent will need proof of funds. Just saying you are going to pay cash is not enough.
2 votes
Jane Peters, Agent, Los Angeles, CA
Wed Jan 16, 2013
I am presuming you mean that the listing agent asked for a letter of approval. And by that they would be asking for proof of funds. This is actually part of the purchase contract. You have to show proof of funds within 7 days of signing the contract. But any agent worth his or her salt is going to want to see that you have the money before signing off.
Web Reference:  http://www.homejane.com
1 vote
Julie Kryuko…, Agent, Beverly Hills, CA
Wed Aug 13, 2014
All you need is proof of funds, which is a bank statement showing enough funds to close. Please feel free to contact me.

Best,

Julie Kryukova

My contact:
(310)402-8181
jkryukova@gmail.com
juliekproperties.com
0 votes
Andrea Gomez, Other Pro, San Antonio, TX
Sat May 11, 2013
One bk statement showing you have cash is all they need. You have a Realtor'?
0 votes
Dear, Andrea,
You have received a lot of good answers. Proof of funds, if paying cash, is all that is required.
May the luck of the Irish be with you!
Patrick McHale
Superstar Realtor
Sunset Palms Real Estate, Inc. West Hollywood, CA
Flag Sat Jun 8, 2013
Rich Homer, Agent, NAPLES, FL
Fri Apr 12, 2013
You should furnish proof of funds, not approval. http://www.naplesrealestateguys.com/
0 votes
Zachary Okyle, Agent, Beverly Hills, CA
Fri Apr 12, 2013
There is no need to provide a letter of approval. It is best to provide three months of bank statements to show a history of cash flow.
0 votes
John C Hill, Agent, Los Angeles, CA
Sat Feb 9, 2013
Cash Buyer's need only to provide an asset statement showing enough liquidity to purchase the home. An approval letter is required when the Buyer is financing the purchase.
John C Hll
CA Realty Group
323 377 2122
0 votes
Just in case anyone need to fill out a Asset Statement form, I found a blank form in this link http://pdf.ac/6LC8O. This site PDFfiller also has several related forms that you might find useful.
Flag Fri Mar 27, 2015
SERGEY FEDNOV…, Agent, Beverly Hills, CA
Thu Jan 17, 2013
Usually you don't need approval letter if you planning to pay cash for your purchase. You can substitute approval letter with proof of funds ( you most recent account statement print out showing enough money to purchase subject property).




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0 votes
Douglas Lagos, Agent, Los Angeles, CA
Wed Jan 16, 2013
Hi Orly,

No need to provide an approval letter.
Just provide the agent a copy of your most recent bank statement. Make sure to cross out the account number.

That should do it. It's quite easy and seems harder than it should be.

I advise my clients to have the proof of funds ready, and I always present it along with the all cash offer.
That way, we have all of our ducks in a row. Maybe your agent forgot, but no harm done since its something that can be remedied within a few hours.

On the other hand, if you do not have your own agent, and have not presented an offer yet; please interview several experienced agents. Then, pick the one that you feel most comfortable working with. A buyer's agent will protect your rights more than someone that works first for the seller.

You can request for help on this forum, or contact me.

Douglas Lagos
Realtor, Certified HAFA Specialist (CHS)
Coldwell Banker Residential
0 votes
Andrew Belch…, Agent, Beverly Hills, CA
Wed Jan 16, 2013
Your broker asked you for a pre-approval letter when you clearly stated that you are an ALL CASH buyer?? Wow. Either this broker is a complete moron, or maybe he wasn't listening carefully when you said you were ALL CASH. ...Let's all hope that maybe he just wasn't listening. If he still insists that you get a pre-approval letter, it might be time to hire a new agent/broker. By the way, this is not the worst thing I've ever seen an agent do. Last week I saw a listing where an agent spelled gym: "jim". Can you believe that??? "JIM"?? Hello!!! It's GYM you idiot! ...some agents and brokers should not be licensed to sell real estate.
0 votes
Drew De La H…, , Beverly Hills, CA
Wed Jan 16, 2013
I'm going to give your realtor the benefit of the doubt, and suggest that he just asked you for an approval letter out of habit. With cash buyers it's customary instead to ask for proof of funds: such as a bank statement. The account number can be blacked out, and it
is usually presented to the seller along with the offer to show that the buyer has the capacity to close quickly.

Suggest that to him as an alternative to the document that he requested.

I hope that helps. Let me know if you have any other questions. I'm happy to help.
0 votes
Meralda Moeh…, Agent, New City, NY
Wed Jan 16, 2013
Are you certain that the broker is asking for a letter of approval and not "proof of funds". In any event, a letter of approval for a cash buyer can be given to the broker by the institution your funds are deposited. The broker may still require a letter of approval from a lender to verify that the buyer is qualified to purchase which would include affordability to pay property taxes.
0 votes
Endre Barath, Agent, Beverly Hills, CA
Wed Jan 16, 2013
Orly the correct request should have been "Proof of Funds" maybe the agent made a mistake and it is as simple as that. Alternatively it might be more, just ask your agent to clarify.

Should you need other questions answered please reach out to me directly for a private response

Endre Barath,Jr.
Prudential California Realty
Beverly Hills, CA

homes@endrebarath.com

310.486.1002(m)
Web Reference:  http://www.endrebarath.com
0 votes
Kiki Freeman, Agent, Los Angeles, CA
Wed Jan 16, 2013
Hello Orly, The broker is presumably looking for "proof of funds". "Proof of funds" is an account statement or possibly a letter from the institution where your funds are located, showing that you have the amount of the asking price, or the offer amount.
This is a normal process, as this also helps you with your negotiations if you submit it along with your offer, which is almost always requested from a seller or listing broker.
Happy Home buying, hope this helps!
Kiki
0 votes
Mark Crane, , Beverly Hills, CA
Wed Jan 16, 2013
Hello Orly. All interested parties just want to see that you have the funds. It's a common practice.
Have you already seen the Oakhurst condo? I lived on that same block-it's a beautiful street. It's listed with one of the agents in my office-I'd be happy to represent you and show you the condo if you don't already have an agent. Cheers!

Mark Crane
Keller Williams Beverly Hills
439 N. Canon Dr
Beverly Hills CA 90210
310.498.3050
markcrane@kw.com
0 votes
Richard "RJ"…, Agent, Beverly Hills, CA
Wed Jan 16, 2013
Probably meant Proof of Funds. Either way, PreApproval or Proof of Funds is needed to make sure you are a capable buyer. Good luck.
0 votes
Lena Samigou…, Agent, Los Angeles, CA
Wed Jan 16, 2013
You just need to show Proof of Funds. It could either be in a form of an official bank letter or a simmly bank statment.
0 votes
James Sanchez, Agent, Burbank, CA
Wed Jan 16, 2013
Send him a bank statement... you can / should white out your address and only leave the last two numbers of your account. As long as your name is there that is good. If they still ask for a pre approval then I would be cautious with working with them.

James
Web Reference:  http://www.Pacifixrealty.com
0 votes
Ron Escobar -…, Agent, Beverly Hills, CA
Wed Jan 16, 2013
is probably a standard answer and they responded to a group. Instead provide the proof of funds as described below.

Good luck!

RonE
0 votes
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