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Asked by Sandra, Ohio Sun Dec 16, 2007

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Answers

5
Amanda R. Le…, Agent, Amherst, NY
Sun Dec 16, 2007
BEST ANSWER
Verification of funds refers to providing the proof necessary to show that you have the means to purchase. Often bank owned property will have this disclaimer. An example would be a cash buyer who would be purchasing with all cash. The buyer still has to show where the money is coming from. A copy of the bank statement, IRA statement, 410K statement, ect. These would be considered verification of funds.
1 vote
Mary Starkey, , Dayton, OH
Sun Dec 16, 2007
In addition to wanting to know if you have the funds in your bank account for closing the property, the bank is also looking for a pre-approval letter from a mortgage loan company stating that you have been approved to borrow a certain amount of money neccessary for the purpose of purchasing the house.
Web Reference:  http://www.marystarkey.com
1 vote
T.E. & Naima…, Agent, Dallas, TX
Sun Dec 16, 2007
If you don't want to show your whole bank statement to the bank, I suggest that you get a letter from your bank on their letterhead, saying that you have sufficient funds available in your account to purchase a property up to X amount.
1 vote
Frances Flynn…, , State College, PA
Sun Dec 16, 2007
Proof of funds is important in ALL transactions, not just bank properties. Over the past several years many buyers have gone into contract with Sellers with expectations of receiving "gift" monies from family members, lawsuit awards, or other sources of funds that did not materialize. Savvy sellers, including banks, ask for proof that funds necessary to execute the transaction are available. That proof may be a letter from a bank manager, or a recent account statement.
1 vote
Brian Burke, Agent, Highlands Ranch, CO
Sun Dec 16, 2007
The bank is lookin to see if you have the funds nessassary to complete the transaction. A lender letter or bank statements for a cash deal.
Web Reference:  http://www.kennaandco.com
1 vote
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