Hard Money Lending - Proof of funds
Hey BP - Hoping someone can help me understand a question that I have regarding proof of funds when using hard money/private money when purchasing a property off of the MLS. When purchasing a property to fix up on the MLS, majority of the time the listing agent will ask for proof of funds. I've been told by a couple hard money lenders that they have never needed to provide proof of funds, does that sound correct? I understand if it is an off the market deal but when it is a deal on the MLS the listing agent will most likely ask for proof of funds. It sounds like a grey area and I can't seem to get an answer. I understand where the listing agent is coming from when asking for proof of funds. How do I go about it? Do I ask the hard money lender for a "pre-approval" or a copy of a bank statement?
Thank you.
Most Popular Reply
@Tom Doherty With an HML, Proof of Funds and Pre-Approval are the same. No actual lender is going to give you a copy of their bank statement, and you don't need it. A pre-approval from a reputable HML is sufficient for 100% of transactions