Proof of funds question

[Jeremy M.]

Is it a problem if I use a POF letter from one lender to make an offer on an REO, but then when the offer is accepted I actually use a different lender?

[Jon Holdman]

Manuel Acuna if you tell the seller you have cash, you will need to state that in the offer and not include any financing contingency. If its a REO, the seller will probably want a much larger earnest money (10% seems to be typical) and they will want to see proof you have the money, typically in the form of bank statements. REOs typically have very short inspection deadlines, 10 calendar days seems common. So, if your inspection deadline passes, you have no other contingencies, and you have 10% of the purchase price on the line, you better be sure you can close. If your offer really depends on getting financed, and your financing falls through, you're going to suffer a substantial loss.