Change is certainly upon us… Pre-Approval Letter. Sellers of real estate including Bank-owned homes (REOs Real Estate Owned). Now require a pre-approval letter or Proof of Funds information in order to submit an offer.
"Without an Pre-Approval Letter, the seller may not even considered your purchase agreement even if it is the highest offer, Sellers will most often take the offer that is most likely to close. Sellers know the mortgage approval is generally the longest contingency to satisfy in a purchase contract."
Pre-Approval Letters must include that the Lender has verified employment , Lender has verified funds to close the sale Lender has data from all three credit reports. Here are a few sample types of documentation of Proof of Funds for Cash contracts: • Original bank statement • Online banking statement • Open equity line of credit • Copy of money market account balance • Certified financial statement.