Pre-approval & VOF Verification of Funds

  1. Pre-Approval – It’s in the Contract!

    1. RPA 3.H. – It is a contractual requirement that the Pre-Approval Letter be provided to Seller. There is a check box to indicate if Pre-Approval Letter is accompanying the Offer.
    2. Always have Pre-Approval Letter revised to show that Buyer is approved for the Offer Price.
      1. If making an Offer at $500,000, it is not good to send a Pre-Approval Letter stating Buyer is approved to $550,000.
    3. Always have Pre-Approval Letter revised to show that Lender “funds to close have been verified.”
  1. VOF [Verification of Funds to Close] – It’s in the Contract!

    1. RPA 3.H. – It is a contractual requirement that the VOF [Verification of Funds to Close] be provided to Seller. There is a check box to indicate if such verification is accompanying the Offer.
      1. Verification is best provided by Buyer supplying a statement [401K, Savings Account, etc.]. Be sure to cross out any account numbers before providing this document to the Seller.
      2. The Lender may also state in the Pre-Approval Letter that “funds to close have been verified.” Stating that “Lender has reviewed assets” is not sufficient to satisfy this requirement.
in Buyers, Compliance, Listings