Importance of Lease Bank Proof of Fund

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Proof of Fund and Its Necessity
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• Proof of fund which is a type of bank instrument
  is often demanded by a seller from home buyers,
  in case when the buyer obtains a mortgage. The
  main reason for demanding this proof of fund is
  to see the evidence if buyer has a down payment
  or closing costs or both agreeing the deal to
  sell to that particular buyer. Because now-a-day
  a preapproved letter or a buyers word alone is
  not enough.

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• Moreover if the buyer claims to be a cash buyer
  then the proof of fund becomes a necessary
  requirement for them to present to a seller.
  Because most of the time the listing agent advice
  the seller to keep the house on the market until
  they receive the proof of fund from a cash buyer.

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• Now-a-day no one believe in the word of mouth
  especially in case of money, so in order to buy a
  home the buyer have to show a purchased own or
  leased bank proof of fund proving that they have
  money to buy that house.

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• A cash buyer is a person that has cash on their
  hand to make purchase without any involvement of
  loan or mortgage and most of the buyers
  considered them as cash buyer even when they are
  not. Buyers that are in the process of selling
  their stocks or mutual funds, holders of deposit
  certificated that not matured, waiting on the
  probate court to distributing the assets,
  borrowing from a relative etc , often considered
  themselves as cash buyers. But the truth is, if
  the cash is not liquid and readily available on a
  short notice then, they are not considered as
  cash buyers.

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• In case the offers cash and show them as cash
  buyer by obtaining hard money loans then their
  behavior is considered deceptive at minimum since
  they lie to the seller as cash buyer when they
  are clearly not, which lead to the violation of
  the contract law.

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• Beyond the earnest money deposit for the
  purchase, you will have to pay some additional
  fee to close escrow, the balance of the down
  payment and need to pay closing costs too. As the
  closing cost a buyer need to pay 3 of the sale
  price in most of the cases.

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• It is not uncommon to find buyers that argue with
  the seller for demanding proof of fund as they
  have a very high standing in the society. But in
  a business even a millionaire buyer is asked to
  show their proof of fund since it is a proof
  stating they have capability to make the purchase.

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