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I'm getting a lot of agents who don't understand what proof of funds is or why a seller needs it. They seem to think that a loan "preapproval" is proof of funds even when the offer instructions say to include the preapproval AND proof of funds. 

Anyone else? 

And I'm back to getting preapprovals that are really prequals. Some don't even have loan amounts or downpayment requirements. Nothing to back the offer!  I just got one that has the purchase price BLACKED OUT!

So how in the world can a seller especially a bank seller accept such an offer without asking for the information I already told the agent we need.  I wonder if they let THEIR sellers accept such undocumented offers. 

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Unsubstantiated proof of funds letters or pre-approvals that are really just pre-qualification letters. Seems to be the age old issue our industry suffers from regularly. As a listing agent, it's a constant battle, educating knowledgeable agents what the difference is and why our seller's need it. Just a few weeks ago, I saw an offer come in with a "pre-approval" letter that had a disclosure on the very bottom, in one line and it said, "This pre-approval is not a guarantee of lending and mortgagor must satisfy all underwriting requirements; credit application, credit check, proof of employment, proof of income, debt to income ratios, savings, appraisal, title and survey, sales contract." I called the lender and he admitted on the phone with me that he had not pulled anything for this buyer and that he just used the information the buyer gave him over the phone. I called the buyer's agent and he wanted to argue with me...UGH!

Cici - what a headache for me. How some agents get a license is beyond me. I had one guy send over a pre qual letter that stated the sale price at $40K lower than the sale price on the state contract? OH MY. 1 + 1 still = 2 in my book. This seems to be rampant. Finally got through to the guy but not before he sends over a pre qual with the stated sales price but nothing to show deference between the loan amount and sale price. He had a hard time understanding that I need to see where the full amount of money is coming from. 

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