I need to Submit a Bank Statement for My Pre-Approval to Buy an REO

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Real Estate Agent with Solutions Real Estate CalBRE Lic #01490977

I need to Submit a Bank Statement for My Pre-Approval to Buy an REO 

A recent buyer asked:  I need to Submit a Bank Statement for My Pre-Approval to Buy an REO. Can I download a copy of my bank statement from the Internet? 

You likely have come across MLS listings where you must provide a pre-approval from the REO lender's requested provider to include with your offer. No surprise that it is someone from the bank who is the REO lender. 

Need to send a bank statement from the Internet? Make sure it's what the bank will acceptNever fear, this is often easy, and fairly quick to do over the phone or via email, even if you have another written pre-approval from YOUR preferred lender. 

The REO bank wants to feel comfortable, based on their particular criteria, that you are qualified. So, first of all, don't be offended. This is more common than not. It doesn't mean you are not a qualified buyer. They just want to do their own due diligence. And heaven knows we have seen some pretty bogus pre-approvals in the last few years. 

My advice? Even if the listing does not specify a proof of funds (POF), I always include it on behalf of my buyer clients. That may be the bank statement or some other savings or investment account. It makes your offer stronger if the bank can see that you HAVE the money needed. 

One thing to note. Many times when you go to print out your bank statement from your on-line account the printout will not show your names on the statement. While this is pretty common, this is a BIG problem, and in all likelihood the bank will not accept it. They need to have something in hand that documents the name of the bank, the buyer names, along with the amount of money in the account. 

You may have to resort to making a copy of the statement you receive in the mail, or asking your bank to provide that to you. In my experience getting something from the bank can take a day or so if you are one of many who no longer get printed bank statements. So plan ahead.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Vickie Nagy 01/23/2011 04:50 PM
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Jeff, it may sound funny, but when you go to your bank and ask them for a statement, they would print it out and give it to you. The trick is that it does not show the Bank name same way as if you printed it yourself.

What you need to do is ask them to stamp the Statement and sign.

Jan 21, 2011 10:45 PM #1
Rainer
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Farooq Khan
Pacific Realty Partners - Newark, CA
Real Estate Broker - CDPE

Jeff, REO properties in SF bay Area are a hot commodity. They sell fast with multiple offers. Most of them go all cash. So the best thing will be to get a real statement with letter head or as Jon mentioned above that get a stamped letter from the Bank showing your funds. Great suggestion Jeff to be prepared.

Jan 21, 2011 11:34 PM #2
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William Johnson
RE/MAX Associates - San Diego, CA
San Diego Real Estate Voice, GRI CRS e-Pro CDPE

Hi Jeff, 

Typically , the REO agent's lender , not usually the lender involved in the transaction, puts pressure on the Buyer to use their service, even where there is an existing relationship.  Have had it happen quite a few times and it is really quite annoying. 

Jan 21, 2011 11:44 PM #3
Rainmaker
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Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

Great way to show your buyers that they are not being singled out . It makes sense that the bank wants to be sure they have a qualified buyer.

Jan 22, 2011 12:21 AM #4
Rainmaker
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Jack Mossman - The Nines Team in Lodi
The Nines Team at Keller Williams - Lodi, CA
The Nines Team in Lodi

Jeff:  We are finding more and more of our servicing companies are requiring pre-approvals from their lending arms ... and they actively are trying to convert buyers to their services.  If a lender is loosing on the front end of a foreclosure ... they are now trying to reduce the total loss by making up some income on the new purchase. 

Jan 22, 2011 03:10 AM #5
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Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Jeff,

You bring up a great point that perplexes many buyers and many short sale sellers. The lenders want print outs that show the bank's name AND logo.

Jon at comment #1 has a great solution. Attaching a screen print showing the logo also works sometime.

Jan 22, 2011 05:14 AM #6
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Kristin Johnston, Waukesha Realtor 414-254-6647
RE/MAX Realty Center - Waukesha, WI
Waukesha County Realtor, RE/MAX Buyer Agent

Great advice JEff!  I agree, I think most buyers should have a preapproval ready before they even start seriuosly looking at homes!

Jan 22, 2011 10:02 AM #7
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
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Jeff, the full account number also needs to show besides their name and bank name.  Most bands these days have the monthly statement on line which is an exact copy of what the monthly statement that they would mail out.

Also a print out from the Teller at the bank with the running daily activity is also acceptable, and that can be gotten while they are there, we have Borrowers do this all the time.  But most banks will print that out on plain paper, which means that the bank name will not be on it,  so the Teller needs to stamp it with the bank stamp and sign it.

Jan 22, 2011 08:07 PM #8
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Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
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Jeff, you have really put into words what so many REO buyers don't consider.  Thanks, I'm passing this on!

Jan 23, 2011 12:23 PM #9
Rainmaker
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Juli Vosmik
Dominion Real Estate Partners, LLC, Scottsdale, AZ - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Great point about the name being on the internet print out - all the security issues just show the last 4 digits.  I have had clients who have gone totally paperless have huge problems.  My bank only posts the last 4 digits.  I stil have some checks for snail mail bills and have had to provide a copy of the check along with the print out showing they are the same. 

Jan 23, 2011 03:33 PM #10
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Vickie Nagy
Vickie Nagy, Broker Associate Realty ONE Group BMC Associates | BRE#01363932 - San Ramon, CA
Broker for San Ramon, Danville, Dublin, Pleasanton

Just tagged you for a re-blog on this excellent post with this intro "

Jeff Dowler, So-Cal specialist recently wrote a great post about banks requiring bank statements with an offer. I often have to have this discussion with buyers. My response is that I've had to supply complete financials every 30 days for a short sale...and I'm the potential BUYER! Jeff's post is great! Thanks for making it available to re-blog."

Jan 23, 2011 04:51 PM #11
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Jeff Dowler CRS

Carlsbad CA Homes for Sale (760) 840-1360
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