Mandatory For All Prospective Homebuyers Only (and not tenants)
Proof Of Funds(POF) is a document that demonstrates that a person has the ability and funds available to use for a transaction. It usually comes in the form of a bank, security or custody statement. The purpose of the document is to ensure that the funds required for the transaction are obtainable and legitimate. We want to see evidence that the prospective homebuyer actually has a down payment and/or closing costs in the case of home mortgage loans before going further with the sale discussion.
Our POF requirement is not meant to be an obstacle in the way of any prospective homebuyer. For any serious prospective homebuyer in the market shopping for a home, this will be the least of their worries, as it's a normal basic industry requirement. Proof of funds must be able to cover the purchase price plus stamp duty. This system has been implemented to serve serious buyers and investors which will result in time saved. POF must be cleared funds.
Closing costs pay for items such as title policies, recording fees, inspections, Courier/Delivery, client account/file setup, Notary, Wire fees, Legal fees, Valuation fees. It is the fees a lender charges to make a loan. As a rule of thumb, closing costs to buy a home run about 2 to 5 percent of the purchase price - That is, even if you do not have the down-payment to satisfy most home mortgages, at least save 2-5% of your prospective home pricing range (We can provide you a customised deal in-house if you can just demonstrate a sustainable monthly income, via a 100% mortgage).
Types of documentation accepted:
To get pre-qualified, lenders will take a quick look at your financial picture and come up with a ballpark figure of how much you can afford to borrow....
• Original bank statement in the name of the prospective homebuyer showing minimum acceptable funds in the account for at least 30 days. Full cash buyers must show the full lower band price range of the property category being viewed and/or discussed
• Copy of money market account balance, from a licensed intermediary or financial institution
• A Pre-approval notification from DCANS Investments LLC (a sister company) is also acceptable
• An original POF Letter delivered to us directly from any external regulated mortgage lender is acceptable as well
• Certified financial statement
• Over the counter physical cash
• Third-party assets (liquid/illiquid), unless the prospective homebuyer is a significant/majority shareholder in the case of business assets.
• Just mere talk
Benefits of our POF requirement:
• It's free. The prospective homebuyer doesn't have to pay any money to us before going through the process to be cleared to view a property and/or initiate discussions.
• We are able to offer high spec properties including extras as standard, because resources are effectively and efficiently allocated to the people who qualify for it - the windfall of cheaper, quality homes.
• What's the use in talking at length, visiting our showhomes with the supposed prospective homebuyer and all that and only to be told by the prospective homebuyer that he doesn't have the money, not even the required down-payment if going for a mortgage or even just the tiny closing costs if even being offered a 100% mortgage or simply does not have the monthly income to service any home loan advanced - to complete a sale even as they are interested?
- Advice: Not many people are expected to buy a home with cash in full - if you are serious about owning a home, at least start an emergency fund/serious savings account and approach any home mortgage lender to start the process.
Note: The POF is not a requirement for you to pay any upfront fees, deposit or money to us, but evidence of a potential serious client and filter to avoid persons incapable of completing a transaction at the time a viewing is being requested. It is important to also note that, you are not obliged to complete a transaction with us after any schedule meeting/appointment or property viewing.
You may contact us via email or speak to any of our sales advisors to assist you in satisfying this simple no cash upfront requirement.