http://www.REIClub.com - Proof of Fund Letters Can Drastically Strengthen Your Purchasing Power In Real Estate. Here Is A Quick Video On How To Get Approved For A Proof Of Funds Letter.
Proof of Funds Letter:
- Document that ensures, the seller. that the funds required for the real estate transaction are obtainable and legitimate by the buyer.
Where Can You Get It?
- Banks
- Mortgage Brokers
- Hard Money / Private Lenders
- Transactional funding companies
Requirements:
Have the funds:
- Recent bank statement
Don’t have the funds:
Traditional Lenders
- Pre-Approval
- Credit history
- Debt-Assets ratio
- Monthly Income
- Approval period: 1-2 weeks
- Harder to qualify
Private Lenders / Hard Money
- Not all lenders are credit score driven
- Deal specific
- End buyer in place (B-->C closing)
- Approval period: 1-3 days
- Easier to qualify, less stringent stipulations
When You Will Need It:
- Back-To-Back Closings
- Transactional funding
- Short sale transactions
- REO purchases
