Proof Of Funds Letter With Transaction Funding

One major short sale concern of the lender is investing the time and effort in arranging a short sale then having the purchaser not close on the short sale. Because of this chance you may expect the lender to ask for a "Proof of Funds Letter" or a "Mortgage Commitment Letter" as a needed part of the short sale package.
This request is often a major hindrance for short sale investors that are flipping the deal with what is regarded as a double closing or simultaneous closing.
-Bank Statement. If you've got the money available send the lender a recent bank statement as your "proof of funds letter".
This letter can be had from your bank, mortgage broker, private money lender, hard money lender, or anybody that has the facility to provide transaction funding.
-Mortgage Commitment Letter. I'm not a fan of the Mortgage Commitment Letter because a lender issues a loan commitment after it has approved both the house and you. The home appraisal must meet the lender's guidelines and the lender may need the property be in a better condition then the present state of the property. For this reason I feel a commitment letter is better suited for purchasing homes that do not involve a short sale.
-Home Equity line ( HELOC ). If you have available equity in a property a HELOC on the property can serve you well. First, there's no charges on most HELOC for unused lines of credit. Second, it meets the lenders guidelines for proof of funds letter even if this is not the money you intend on closing with.
If you are new with a small amount in resources, find a trusted hard money bank to work with and they can supply the proof of funds letter you need.
If you want to find out more on ways to close deals with private transaction funding , in addition to obtaining the mandatory proof of funds letter, without using any of your own money or credit please visit www.weprovidethefunds.com
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