Why Do I Have to Provide a Proof of Funds for Pre-Approval?

Posted by WILMOTH Group on September 9, 2021
Why Do I Have to Provide a Proof of Funds for Pre-Approval?

Purchasing HUD homes requires making available, with your offer documentation, that the purchaser either has the funds or is approved for bank financing. The buyer submits this information with their executed HUD contract package.

When the proof of funds is provided as cash, then the method for purchasing the property needs to be cash. Please do not come back after the offer is accepted and state your buyer now wants to use financing. If you are the buyer, or the agent representing that buyer, the seller may choose to cancel the HUD contract and retain the earnest money due to non-performance under the terms of the accepted contract.

Pre-approvals and the purchase contract should specify the type of loan and the LTV (loan-to-value) the borrower is seeking.

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WILMOTH Group is headquartered in Indianapolis, Indiana and Fort Myers, Florida. We focus on providing creative local solutions for a variety of residential real estate needs including, properties for sale, property management services in Indianapolis, and short-term management services in Tampa and Fort Myers.