Has your Proof Funds letter been greater than offer? Any problems

Question

I'm trying to place an all-cash offer which requires a proof of funds letter.

My offer is less than the list price.

My bank balance is greater than the list price.  My proof of funds letter will also confirm that I'm able to pay the list price but I won't.

Have you had any issues with this in past?

I'm looking to weigh the pros and cons of submitting the offer w/ the proof of funds exceed the offer.

David O. · Answer

Account Closed No need to have any dollar amount in the proof of funds letter. Not need to say what you are willing to pay either. As long as you have enough funds in the bank to cover whatever your maximum offer will be, all the letter from the bank (on their letterhead, and signed by an officer of the bank) should say is that "your name" has sufficient funds available to purchase the property located at "property address". Nothing more, nothing less.

Account Closed · Answer

Good Points, I'm leaving BOA for a local bank, as soon as things settle.

I'm probably going to go with a simple screenshot / send the pdf statement to get the ball rolling.

Thanks for the feedback.

Account Closed · Answer

@David O. Thanks. I'm dealing with a national bank (BOA) who only seems to be able to send an auto-generated letter with my balance etc.

Have you heard of http://fundthiswholesaler.net/funding-request/?

They seem to be able to generate a letter. I may check but I'm skeptical. I'm not providing them with any sensitive info.

Account Closed · Answer

As other posters have said (in so many words):  Here is my offer with proof of financing.  Take it or leave it.

Realize the bank account you use to show proof of financing doesn't have to be the source of funds you actually use.  If you were concerned about showing your ability to pay more, set up a separate savings account that is linked to your checking account and deposit only the funds you want to show in that linked account.

When I sold my house, my buyer was actually three people who offered to pay cash and provided a snapshop of their bank accounts.  I added up the amounts to make sure they matched their offer price (which was higher than my asking price) and checked the dates to make sure their information was current.

Then the buyers did something that surprised their realtor, my realtor, and me -- they decided to fund part of the purchase with a hard money loan.  For me, that meant escrow closed in the afternoon rather than the morning.  The title company had to wait for the hard money lenders to wire in their money on the morning of the COE date before they could record the deed with the county and then wire me my money later that day.

Jay Hinrichs · Answer

YUP I would never use a national bank  ever  only small commercial bank were I know my account manager by name go to lunch with them and get all sorts of service.. big banks are not for smaller investors.. if you have 10 million in BoA you can get this service no sweat you have normal under 1 mil in deposits you will get the hey go talk to customer service on the phone over there.

also I always send in a simple shot of our bank balance I don't care if there is more than I am offering does not matter but I tell you it carries a lot of weight if we send a bank balance in for say 500k in cash and we are buying a 50k prop.. who they going ot choose

David O. · Answer

That sucks. Is there no way to go to your local BOA branch, meet with the branch manager or loan officer, and get something done. Or, did you already try that and no go?

I have not heard of the fundthiswholesaler site, and not sure how legit it would be considered by a seller since (it looks like) you can pretty much put whatever info you want in there.

Lots of folks talk about how much easier/better it is to work with a local bank, which I do. This is a perfect example how that can be a benefit with more personal service. I know, too little, too late in this instance, but perhaps something to consider in the future.