The Importance of Proof of Funds When Selling Your House for Cash
When you’re looking to sell your house fast for cash, it’s easy to get into a rush when you’re looking ahead to your payout. Many people who end up selling their houses for fast cash are in financial predicaments, and the need for quick funds has likely put them in a bind.
This could be for any number of reasons, including:
- A death in the family
- A foreclosure situation
- You’re moving unexpectedly
- The house just needs too many repairs
Regardless of the reason, it’s vital that you understand the importance of proof of funds when selling your house for cash.
Obtaining Proof of Funds
Whenever someone purchases a house the traditional way using a bank’s financing or when they’re purchasing a house for cash, they’re required to obtain proof of funds from their financial institution. When you remember the importance of proof of funds when selling your house for cash, it ensures that the buyer obtains the necessary documentation from the bank. Therefore, giving you peace of mind regarding their ability to purchase.
Satisfying the importance of proof of funds when purchasing requires the buyer obtains proof of having the correct amount in their bank account. When presented with this document, ensure it contains the following:
- The bank’s contact information
- The total amount of cash in their checking and savings accounts
- A signature of the bank representative
It’s also worth noting that only liquid assets are relevant for proof of funds. If the buyer attempts to show you property assets from other items in Indianapolis – such as other homes, vehicles, or stock holdings, decline and remind them what is required to satisfy the demands of proof of funds.
When to Get Proof of Funds When Selling Your House for Cash
It’s important to get proof of funds during the cash-buying process before the offer is put on the home. The buyer won’t be handing you a literal bag of cash but instead compensating you through an ACH transfer or a cashier’s check.
It’s vital that you never underestimate the importance of proof of funds when selling your house for cash. If this proof isn’t provided, or if the buyer doesn’t bring the funds in the correct form, the closing attorney may not accept responsibility for the deal, and you’ll have to wait longer to sell your home.
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