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Proof of Funds

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  • 09-07-2019 8:58pm
    #1
    Rebecca2019
    Registered Users Posts: 5 ✭


    Hi All!
    Looking for some help in relation to purchasing (hopefully) our first home!
    Our auctioneer has said that he needs proof of funds- we have our letter of approval in principle- is this sufficient?
    Also, we aren’t keen for him to know our full limit so is it acceptable for us to give him a redacted form of this document?
    Really appreciate any help or advice!
    Thanks in advance 🙂


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    #2
    corkmans1
    Registered Users Posts: 75 ✭✭corkmans1


    I was also in this situation a few weeks back and I gave the letter of approval in principal so this will be sufficient.

    I am not sure about removing the amount you have approval for as they will expect to see that you have an amount greater than the bid you made.

    The auctioneer said basically they will not take bids without the letter of approval as this avoids bidders who have not been mortgage approved being involved in the bidding process. He said I would be shocked if I knew how many bidders have not even spoke to a bank before making a bid on a house and that this process rules out bidders with no mortgage approval.

    I was also thinking are they just using this to see what I can afford/can they squeeze me for more money :) but my offer was accepted thank god.


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    #3
    jmBuildExt
    Registered Users Posts: 692 ✭✭✭jmBuildExt


    You're right not to want to let the agent know how much your approval is.
    I dealt with a broker once who gave me a letter stipulatng that I had funds to cover "the asking price" - that was enough for the estate agent.
    If you're dealing with the bank they should be able to give you same.... although I know it can be a nightmare getting anything out of them in any sort of hurry.


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    #4
    Ronney
    Registered Users Posts: 849 ✭✭✭Ronney


    Contacted an EA to register an interest in a new property that went up yesterday.

    Was told they hope viewings to be available by Easter but would need proof of funds to do so. Is this something creeping in now to avoid tire kickers?

    Also house would need a bit of work so would have funds for a good bit over asking.

    Just wondering what people do here to avoid showing their hand?

    Would be financing from a split of savings/partners savings/joint mortgage


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    #5
    Prezatch
    Registered Users Posts: 952 ✭✭✭Prezatch


    I was asked for proof of funds when trying to go sale agreed and in a bidding war against someone else back last August when salary cuts and furlough were hitting hard.

    It was my final bid and I trusted the EA and had a bit of relationship built up with them. Their office is also well known in the area as being a professional outfit so in the end I caved and gave the proof of funds out of desperation to get the house, which took the form of approval in principle letter and also a savings bank statement. The other buyer didn't respond to the bid and we got it. We then negotiated the sale agreed price down 10k then after securing the win, citing stuff from the surveyors report that needed attention.

    The stage of expressing interest in a property surely shouldn't require this though. I would say a vague letter to show approval in principle would suffice. We were at an advanced stage where tension was high for all parties and the vendor wanted to close.


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