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Funds availability letters.
Some people get a home equity line of credit on their current home in order to buy cheaper investment properties.
In purchasing the new property, often by auction, they may need to be able to verify that they have the ability to actually complete that purchase. Thus, they will ask for a fund availability letter. Or, in the case of a home equity line of credit that is not completed yet, a pre-approval letter.
This is fine. Happy to help. But there are a few little, simple, rules.
1) A funds availability letter will be dated with today's date, and you are very lucky there isn't a time stamp as well. I can see the funds are available right now. I cannot and will not guarantee they will still be there tomorrow. No, I really don't care that your auction is next week. If you want the letter dated for next week, ask for the letter the morning of.
2) No, I will not give a funds availability letter for a home equity in process. I will give a pre-approval letter. Why? because the funds ARE NOT available. And if anything goes wrong with the loan, they will not become available.
3) A pre-approval letter will list the numerous things that the approval is contingent on. If any of those things do not work out, the pre-approval letter is null and void.
4) No, I will not list your son's name on the funds availability letter. The funds are not in your son's account; they are in your home equity line of credit. Same for a pre-approval letter. You son is not the one who is conditionally approved.
5) No, I will not state that the funds will be on hold until the purchase. This is not true. We are not holding your funds and keeping you from using them. Why would you even want us to?
It's very basic. I will state what is true. Exactly and with any contingencies listed as to that truth. I do not lie at my job when I talk to you; I especially am not going to lie in writing.
No, not even a little bit.
Some people get a home equity line of credit on their current home in order to buy cheaper investment properties.
In purchasing the new property, often by auction, they may need to be able to verify that they have the ability to actually complete that purchase. Thus, they will ask for a fund availability letter. Or, in the case of a home equity line of credit that is not completed yet, a pre-approval letter.
This is fine. Happy to help. But there are a few little, simple, rules.
1) A funds availability letter will be dated with today's date, and you are very lucky there isn't a time stamp as well. I can see the funds are available right now. I cannot and will not guarantee they will still be there tomorrow. No, I really don't care that your auction is next week. If you want the letter dated for next week, ask for the letter the morning of.
2) No, I will not give a funds availability letter for a home equity in process. I will give a pre-approval letter. Why? because the funds ARE NOT available. And if anything goes wrong with the loan, they will not become available.
3) A pre-approval letter will list the numerous things that the approval is contingent on. If any of those things do not work out, the pre-approval letter is null and void.
4) No, I will not list your son's name on the funds availability letter. The funds are not in your son's account; they are in your home equity line of credit. Same for a pre-approval letter. You son is not the one who is conditionally approved.
5) No, I will not state that the funds will be on hold until the purchase. This is not true. We are not holding your funds and keeping you from using them. Why would you even want us to?
It's very basic. I will state what is true. Exactly and with any contingencies listed as to that truth. I do not lie at my job when I talk to you; I especially am not going to lie in writing.
No, not even a little bit.