Can I use my cash as prove of funds when I make an offer and close the deal with HML or do I have to use pre-aproval letter from HML to make an offer?
You don’t HAVE to offer any financial info. to the seller. They may ask for it and may refuse your offer if you don’t but you certainly don’t have to. I’ve had sellers ask for it and I refused because it was a hassle and they accepted anyway and the deal was done.
Are you wanting to pay all cash for a property and that’s why you’re wanting to show them you have the cash? If I was a seller I would take that with a grain of salt because who’s to say you didn’t just stick some borrowed money into an account to make it look inflated for a day or two.
I will say this, offers with pre-apps do look stronger in the eyes of MANY sellers. Banks issue those things pretty loosely though so I’m not sure how much stock you can put in those either. Think about it this way: If you had two offers in hand for the same amount and one had a pre-app plus a strong earnest money deposit and the other had next to nothing which would you accept? I personally don’t put much stock in those things because I’m smarter than that to know how easy they are to get but there are ALOT of sellers who put stock into them.
I can pay cash but I want to use HML .I want to use my cash only to make an offer,this is REO and bank wants prove of funds if you pay cash.Is it legal to make cash offer and closed with HML?
Where is your cash? Is it in a bank account or is it stuffed inside mason jars buried in your backyard? :smile
If it’s in a bank, have your bank manager draft a letter stating you have X amount in X account for X long.
OR if you’ve chosen an HML, they should be able to provide you with a proof of funds document.
I have cash in a bank and prove of funds letter.I did not find HML yet.I want to make cash offer and when they accept find HML to close the deal.Is it good or bed idea?
You can use cash or anything else you want to show “proof of funds”. You can submit a copy of your account or HELOC statement (with accounts number blacked out), to show that you are good for the money even if you don’t plan on using that money to purchase PROVIDED the contract that you are using does not obligate you to use what you show as proof.
Not a great idea (but not horrible) to find a deal and then look for money. Might want to shop for lenders ahead of time or at least at the same time you are making offers.
Chris