Do you Know Why Sellers want to See Proof of Funds from Serious Buyers?
It is not uncommon for a seller to want to see proof of funds from someone who is interested in buying their home. The proof of funds serves as evidence that you actually have the money to pay both the down payment and any closing fees associated with buying the house.
Many sellers want to see this proof of funds before they will agree to sell the home for you. Unfortunately, a preapproval letter from a lender is not always enough.
Their Listing Agent Told Them To
Almost all sellers are going to demand some sort of proof of funds from someone who is buying their home with cash. This is because their listing agent would have told them that they should keep the house on the market until they see proof of funds. Until you can show proof of funds, you are not considered a serious buyer. This means that beautiful home that you want, is on the market for anyone else to get a look at.
Who is a Cash Buyer?
Just as the name suggests, a cash buyer is someone who has the cash on hand for the down payment and the closing fees. This is someone who has enough money to buy the house outright. This is not someone who needs a loan or a mortgage in order to buy the home. There are a lot of people who just assume they are a cash buyer, when they really aren't.
You have to be buying the house outright with cash in order to be a cash buyer. You cannot be using a loan for the purchase. You cannot be selling stocks, refinancing another residents or liquidating funds. You have to already have the cash in your hands ready to trade for the house in order to carry this title.