Verification Of Funds Letter
i've found a very good buyers agent who gets listings of REO's in the area I'm looking for. The only catch is that the selling agent requires proof that you can close the deal. Will hard money lenders provide verification letters if they're interested in the deal?
I've discovered that a "commitment letter" from my company will sometimes work with RE agents, on friends' deals.
So next time you need one, you could have a friend write one, "subject to inspection & appraisal" and sign it as president of his company...and it might fly.
There's of course no real commitment from him or his co., but only you & he know that.
The realtor isn't cognizant of the situation, so has to present the offer just as though the loan commitment is from WA MU or some other biggie.
The agent is just trying to prequalify prospects like any other good business minded person. If you talk to the agent a bit more, you will probably find he or she just wants verification that talking to you is not a waste of time.
How do you plan on closing the deal? Do you have cash? A Partner? A line of credit? A hard money lender? A family member willing to make a loan? An investor waiting for the lead? However you plan on paying for the deal, there is someone who can provide verification acceptable to the agent that you are not just wasting time.
Thanks guys! I planned on using a HML. I know it probably depends on the individual lender but do HML's normally provide prequal letters? Also, do you have an example of language that leaves the HML lender under no obligation to fund the deal but satisfies the bank.
CA