Question proof of funds

LirW

Hi,

I have a question regarding Proof of funds when it comes to buying in cash.
We're going to view a house within our cash budget.
The thing is that a small part of the budget is yet to be released in a few weeks time. Can we make a bid and if so, how can we proof that there is this last bit coming into the account? Or do we have to wait?
The payment is a lump sum.

DubCount

I made a cash purchase last year and had some of the funds in a Share Portfolio. The selling agent would not accept a statement from the stock broker as proof of funds. They would only include funds in a bank account as accepted proof of funds. Maybe it depends on the agent you are dealing with, but I expect you'll have to wait for the funds to be in place.

Graham

There's no hard and fast rules, it really depends on the agent.

Most agents just want to know you're in a realistic position to complete a purchase.

LirW

Would you reckon that the EA could be satisfied with the proof we have and an explanation of the situation? I just don't want to give an EA too much information that wouldn't be none of his business.

Samuel T. Cogley

LirW wrote: »

Would you reckon that the EA could be satisfied with the proof we have and an explanation of the situation? I just don't want to give an EA too much information that wouldn't be none of his business.

It rather seems it is his business though.

All you can do it try it tbh.

LirW

If we like it we can just hope that he's a chill lad since it's a rural EA.

Would they need a bank statement with exact numbers? (This was what I was referring to) Because I wouldn't want to give my whole budget in numbers to the EA in case of bidding or are they usually satisfied with a letter from the bank?

brownej

Be careful showing the EA your proof of funds.
If he knows you have more money than the current bid he may attemp to drive up the price. you are essentially showing him your hand.

When I was buying (mortgage customer with some cash). I only ever showed the EA a letter from the bank indicating that I was approved for a mortgage. There was no figure on the letter.
As you are a cash buyer and if you don't want to disclose your full finiancial details to the EA you could ask your solicitor to write a letter indicating that you have sufficient funds in place to complete the purchase.

LirW

That is actually an amazing idea, thanks a lot Brownej!