Verification of funds letter?

Asked by Christopher L., Shaker Heights, OH Thu May 28, 2009

What is a verification of funds letter? We are doing a normal mortgage w/ 20% down.

Thanks,

Chris

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4
Drew Gaebele…, , Solon, OH
Thu May 28, 2009
A verification of funds letter is something that is typically asked for if you are purchasing a house for cash and not financing.

When financing they would ask for a pre-approval letter, but in the case of no mortgage they want the letter to know to prove you actually have the money.
0 votes
John Wirsing, Agent, Pepper Pike, OH
Thu May 28, 2009
The verification of funds is a request to assure the Seller that you as the buyer has the money available that is required in the contract.
If I can be of assistance to you in the future, please give me a call at 440-487-2193 or e-mail me at jwirsing@kw.com
John Wirsing
Realtor
Keller Williams Realty GC
0 votes
tom roberts, Agent, powell, OH
Thu May 28, 2009
You must not be using a Realtor Chris? this ia a letter showing you have the funds in the bank.

TJ
0 votes
, ,
Thu May 28, 2009
Hi Christopher,
The lender is looking for a Verification of Deposit form to be completed by your bank to veryfy the average amount of funds you have in your account over the past 2 months, OR they will accept the past 2 months bank statements. The reason for this is because they want to make sure the money is yours, and isnt being "borrowed" from someone else or a loan from another financial institution.
If the money is from a family member, you can however get a "Gift Letter" and the family members' bank statements to verify funds for a down payment or closing costs. I hope this helps!
Let me know if you have any questions, thanks -

Joshua Pick
http://www.crefco.com
216-236-7266 phone
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