11-11-2010 07:12 PM
11-12-2010 11:22 AM
It is standard procedure for a Buyer to show proof of funds. The proof of funds should be enough to cover your down payment and closing costs. All of these funds don't have to be in a single account... you can show proof from your bank's checking and savings accounts, a brokerage account (ex. Charles Schwab, Vanguard, Fidelity) and/or your 401k/IRA account- if you plan to draw money from it for your property purchase.
For your security, you always want to be sure to cross out your account numbers with a black marker or white out before sending it to the agents and Seller for review. Just be sure that your name is on the account statement so that they can verify the funds are yours.
I'm not sure why they want you to show proof of funds for a portion that the Seller agreed to pay... but generally the Seller would like to see enough funds to cover your portion of costs along with a cushion for unforeseen costs.
Hope this helps and good luck with your purchase!
12-08-2010 09:06 AM
Proof of Funds Letters:
I usually suggest that the buyer have their lender prepare a letter stating that their client has adequate funds to cover the offering price in the purchase and sale contract stating the property address and exact offer amount. The lender can add a statement that " the seller to contribute up to ______% of purchase price towards buyer closing costs and other non-recurring expenses." (3-6% being the suggested range here)
This statement is also added to the "additional provisions" section of the purchase and sale contract. The seller's agent may ask for proof of funds to cover both the offer amount and requested closing costs if they are trying to negotiate that the seller not pay these. Once you show that you can pay these costs they may feel they've put you as the buyer in a position to pay your own expenses.
I hope this was helpful.