In today’s competitive real estate market, it’s important that serious buyers have all of the necessary documentation ready to make an offer at a moment’s notice. This documentation includes financial paperwork like pre-approval letters (pre-qualification letters for Texas buyers) and proof of funds (even if you’re that rare buyer who can pay in cash).
Mortgage Pre-Approval/Pre-Qualification
This is a letter from a lender stating the loan amount for which you’ve been approved. Essentially, it’s proof of your financial ability to purchase the home.
Note: While a pre-qualification sounds similar to pre-approval, they’re not the same thing. Learn the difference between a pre-qualification vs. pre-approval.
Your pre-qualification/pre-approval letter will usually need to contain:
- Your name (or the name of your co-buyer)
- Issue date (ideally within 60-90 days of the offer date)
- The loan amount you qualify for
- Name of your lender
- Lender NMLS number
Proof of Funds
In specific markets (like Los Angeles) these documents are required to show the seller that you have the liquid funds available to cover the costs associated with purchasing a home. Valid proof of funds documents could be:
- A statement of accounts from your bank statement
- An open equity line of credit
- A copy of a money market account balance
Proof of funds documents, usually need to have the following information clearly visible:
- Your name (or the name of your co-buyer)
- Issue date (ideally within 60-90 days of the offer date)
- Name of the financial institution
- The amount that’s currently available
You can work with your dedicated Opendoor Experience Partner or your agent to determine what documents will work best.