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Answers (21)
- Kevin Vitali, "MerrimackValleyHomes"
- Contributions:68
If your pr-approval states that assets have been verified, I don't think it is necessary to show proof of funds. Unfortunately many lender are putting out very pathetic pre-approvals. I just ran into one, when questioned, the bank hadn't even pulled a credit report.
If you are asking a seller to take their house of the market for you it is not unusual to ask for some proof of funds. There are many deals falling apart on financing and the seller/ agent what to make sure you have a high likeliness of closing on the deal.
If you are asking a seller to take their house of the market for you it is not unusual to ask for some proof of funds. There are many deals falling apart on financing and the seller/ agent what to make sure you have a high likeliness of closing on the deal.
- adeline1
- Contributions:1
I do hope you got the house, I am in somewhat boat as you but for a different reason, I had to fill form for help to pay my Refuse Collection Charges, and they are asking me for Bank Statment , like you I don't wish for them to see my personal details, I dont know what to do as I need help with payment,did you get any other advice that would help me also . thank you
- Dean DeBitetto, "DeanTheRealtor"
- Contributions:105
Yes you are required to sign the Bank Addendums or you will lose the house. Typically the terms in the Bank Addendum are similar to the Real Estate Contract, however certain timetables are shortened, such as the inspection period, and there may be verbage related to the inspection that you cannot use minor issues as a reason to cancel the contract. Make sure you and your agent read it closely and if your agent cannot answer your questions, hire a real estate attorney to examine it as well.
Sometimes the Bank Addendum is part of the initial offer, sometimes it comes after the initial offer has been accepted, however, the offer is not officially accepted until all contracts and addendums have been signed by both parties.
Sometimes the Bank Addendum is part of the initial offer, sometimes it comes after the initial offer has been accepted, however, the offer is not officially accepted until all contracts and addendums have been signed by both parties.
- Real Estate, "Long Island"
- Contributions:970
Your financial commitment letter from your lender is sufficient attached to your offer for any bank owned property. It states your down payment and ability to purchase. Your feeling is right, you, your bank, and your lender only need to know your business. Offering 10% more down payment is not going to put you in a stronger buying position, in fact, it could hurt you showing you have money. Think about lowering your offer while the bank is paying the bills on the non performing property.
Do not be in a rush to close a deal. Time is on your side and I'm sure there is a better house out there for your needs at a much better price for you right now. I guarantee you will make a ton more money on your acquisition and more than likely at a better interest rate in the coming months.
To find and make an excellent deal takes a lot of work and skill. Tell that to your buyer-broker agent.
- Charo Bhatt, "charobhatt"
- Contributions:68
Hi Johnny,
I believe your agent is trying to get you in the front of other offers by providing items that sellers or seller's agent may have question for. Even though you provide lender's approval it's a very common practice in Real Estate to ask for proof of funds.
By providing the statements you are making your position stronger.
You may want to black/white out all the private info on the statement i.e
SS #. If sellers can see that you really have the funds to close the escrow and you are a legitimate buyer who also has the lenders letter etc. the chances of your offer gets accepted are higher.
You are buying a home, possibly the most expensive asset of life. My suggestion is have a Real State Professional on your side who you can trust and take his/her suggestions. They are only trying to help you get the home of your choice in the time frame you want.
Good luck to you,
Charo Bhatt
510-381-2105
I believe your agent is trying to get you in the front of other offers by providing items that sellers or seller's agent may have question for. Even though you provide lender's approval it's a very common practice in Real Estate to ask for proof of funds.
By providing the statements you are making your position stronger.
You may want to black/white out all the private info on the statement i.e
SS #. If sellers can see that you really have the funds to close the escrow and you are a legitimate buyer who also has the lenders letter etc. the chances of your offer gets accepted are higher.
You are buying a home, possibly the most expensive asset of life. My suggestion is have a Real State Professional on your side who you can trust and take his/her suggestions. They are only trying to help you get the home of your choice in the time frame you want.
Good luck to you,
Charo Bhatt
510-381-2105
- johnny2010
- Contributions:54
So,does that mean Bank addendum must be sign for REOs and is this before offer is accepted?
- Marlow Harris, "Marlow Harris"
- Contributions:249
In my experience, if you are trying to buy a bank-owned property and you refuse to sign the bank addendums, then you will probably not get the house.
- johnny2010
- Contributions:54
Thank you for all for great answers. The most I will do is have my lender adjust the down payment amount or ratio to reflect 30% and show it to my agent. Regarding the Bank addendum, what if I do not sign as requested by my agent, do I lose out on the property?
- Amanda Alejandro, "homesforsale86"
- Contributions:480
Even on an reo... I haven't asked for bank statements. If your comfortable let the listing agent contact your lender. or only submit the amount of sales price documentation or funds to close on letter head not anything more. It could be used to get a higher price.
- Amanda Alejandro, "homesforsale86"
- Contributions:480
No this isn't normal.... that is between you and your lender. The only thing that agent and listing agent needs is pre-approval letter with the stipulations then your buyer agent needs to submit full loan commitment to seller per your contract.
I have never asked my buyer for bank statements.
I have never asked my buyer for bank statements.
- Dean DeBitetto, "DeanTheRealtor"
- Contributions:105
If your offer has not been accepted DO NOT offer up your bank and brokerage statements to the listing agent. That information can be used as leverage against you to obtain a higher selling price. In fact, NEVER offer your statements...as Sandra stated below, have your bank and/or brokerage provide a letter on company letterhead showing only the necessary funds needed to close, not a penny more. They do not need to know you have, say, $100K, when you are only going to use $50K...they only need to know that $50K is available. Your buyers agent should be advocating this on your behalf as they are looking out for your best interest and trying to obtain the best terms available.
Sandra is absolutely right that the "Bank Addendums" supersede anything and everything in the original contract and you want to know exactly when that clock starts ticking. Miss a deadline, and you want to walk away, you might lose more than your earnest deposit, they may ask for specific performance of the contract and then you could be compelled to own a home you don't want, or defend yourself at a significant cost to get out of.
Make sure your agent clearly outlines these timelines to you!
Sandra is absolutely right that the "Bank Addendums" supersede anything and everything in the original contract and you want to know exactly when that clock starts ticking. Miss a deadline, and you want to walk away, you might lose more than your earnest deposit, they may ask for specific performance of the contract and then you could be compelled to own a home you don't want, or defend yourself at a significant cost to get out of.
Make sure your agent clearly outlines these timelines to you!
- Courtney Cooper, "CourtneyCooper"
- Contributions:377
I would have them contact your lender. I like to keep a clear line between what I provide and what the lender provides, but Marlowe is right below - when buying a bank owned home, things are not as they "normally" are:)
The only time I have provided bank statements with an offer is when it was an all cash offer and even then, I was very careful to keep confidential things blocked out with a thick Sharpie pen.
The only time I have provided bank statements with an offer is when it was an all cash offer and even then, I was very careful to keep confidential things blocked out with a thick Sharpie pen.
- Marlow Harris, "Marlow Harris"
- Contributions:249
Johnny,
It sounds like you are buying a Bank-Owned property.
With a bank-owned property you often have to jump through many different hoops just to get your offer looked at, let alone accepted.
With a bank-owned property the banks write their own rules. They may request "proof of funds". That does not have to be your bank statements but it should be a letter from either your bank or your brokerage account stating that you have the liquid funds available to purchase the property and you are not relying on any contingent source of funding.
You don't have to do this, but then you probably won't be considered a serious buyer by the bank, so I suggest you do what your agent asks you to do if you want the house.
It sounds like you are buying a Bank-Owned property.
With a bank-owned property you often have to jump through many different hoops just to get your offer looked at, let alone accepted.
With a bank-owned property the banks write their own rules. They may request "proof of funds". That does not have to be your bank statements but it should be a letter from either your bank or your brokerage account stating that you have the liquid funds available to purchase the property and you are not relying on any contingent source of funding.
You don't have to do this, but then you probably won't be considered a serious buyer by the bank, so I suggest you do what your agent asks you to do if you want the house.
- Tina Dawson, "Tina Dawson"
- Contributions:19
Have you bank write a letter to the agent-s involved and let it show you have enough to cover this transaction. You only need to show proof of funds that is all.
- Sandra Wills, "REZDEALS 4U"
- Contributions:1
Proof of funds are always required for Cash Offers. All you need to do is get your bank to issue a letter on its letterhead signed by an bank officer stating your line of credit. The letter should be addressed in such a way that it identifies you as the owner of the bank account. There should not be a bank account number on the letter.
Re: Bank owned properties' Addendums. There are always addendums associated with bank owned properties. These addendums override the Purchase and Sale Agreement. Each bank has a totally different set of Addendums.
Therefore, you should have your agent fully explain what the differences are. For example, the P-S agreement might say 10 day inspection period and the Addendum list a 7 day. This is important because the clock starts ticking on the due diligence period upon verbal acceptance (via email) from the Seller. The due diligence period is when you have the ability to inspect the property and get out of the deal and get your earnest $$ back if a major repair or defect in the property is discovered during the due diligence period.
Typically, banks sell AS IS, no disclosure and won't do any repairs.....
The Fannie Mae/Freddie Mac owned properties are being renovated with the Government stimulus $$ and you can get some very very good deals if you have a contact (ME) that knows what is coming on the market in advance of being listed on public domains.
- Mike Amo, "mikea987"
- Contributions:4
Johnny,
The seller/Realtor could request that you update your pre-approval letter to show 30% sourced instead of the 20% if you change your offer. Nowadays Realtors/sellers are looking for more and more evidence that buyers are qualified since there are TONS of them out there.. or is that TONS of properties! Nevertheless it is important to note that in addition to your down payment the bank generally requires anywhere from 3-6 months of PITI (payment, interest, taxes, insurance) reserves to qualify, so just make sure you are aware in case the extra 10% poses a potential reserve shortfall. Otherwise just print out your most recent brokerage statement and show it to you broker and they should be able to adjust the pre-approval letter no problem. And if they ask your for your reserve docs, refer to my previous comment. Good luck.
The seller/Realtor could request that you update your pre-approval letter to show 30% sourced instead of the 20% if you change your offer. Nowadays Realtors/sellers are looking for more and more evidence that buyers are qualified since there are TONS of them out there.. or is that TONS of properties! Nevertheless it is important to note that in addition to your down payment the bank generally requires anywhere from 3-6 months of PITI (payment, interest, taxes, insurance) reserves to qualify, so just make sure you are aware in case the extra 10% poses a potential reserve shortfall. Otherwise just print out your most recent brokerage statement and show it to you broker and they should be able to adjust the pre-approval letter no problem. And if they ask your for your reserve docs, refer to my previous comment. Good luck.
- Mike Amo, "mikea987"
- Contributions:4
Tell them any array of expletives you feel necessary and if you haven't signed a contract you want the sales price reduced by 20K since the market is garbage and an additional 3% seller concession to be paid out of their commission or you will walk.
- johnny2010
- Contributions:54
My pre-approval letter is prepare with my bank account and brokerage account reviewed. Those combine accounts have more than enough for 20% down. The pre-approval letter has 20% down. On my offer I decided to put 30% down to make a stronger offer. Would that be a problem? since my lender knows I have the cash neccessary. I do have to transfer some cash from my brokerage account to Savings account.
- wetdawgs
- Contributions:26945
Does your preapproval documentation get prepared after reviewing your bank statements so they verified that you have the down payment you claim? If not, ask the agents for the appropriate way to have a third party confirm availability of funds.
- johnny2010
- Contributions:54
Also, my agent is requesting I sign a "Bank Addendum" that states my offer and other things, Never done this before, she will forward that to me on Monday. I don't have a clue what that is. She says it is very common for banks to request this since this is a bank own property. Is that True?
- frisky1
- Contributions:448
You are absolutely right that the only financial info that anyone else needs (aside from the bank/mortgage broker) is your pre-approval letter. Now the seller can ask you for your financial info and that's often requested when its an all cash or mostly cash offer but you always have the right to refuse. Tell her to give you her bank statements and you'll think about it.
AGENT REQUESTING MY BANK STATEMENTS
I just put in my offer with my buyer's agent. She is insisting that I supply her with my bank statements to show proof of funds and to be share with the listing agent.
Is that normal? My feeling is that only me, my bank and my lender are the only ones to have this information, Not the listing agent or the selling party.Besides, the pre-approval letter states very clearly the loan amount. After all thats what the pre-approval letter is for.
Any comment is welcome.
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