What must a buyer provide to show they are ready and able to purchase real estate?

A bank pre-approval letter and a good faith deposit are essential components that demonstrate a buyer's readiness and ability to purchase real estate. The pre-approval letter indicates that a lender has evaluated the buyer's financial situation and has agreed to lend them a certain amount, thus showing the seller that the buyer is serious and financially capable of completing the purchase.

The good faith deposit, often referred to as earnest money, represents a buyer's commitment to the transaction. It reassures the seller that the buyer is serious about following through with the purchase. Together, these elements not only strengthen the buyer's position in negotiations but also provide a level of confidence to sellers regarding the viability of the transaction.

Other options, while potentially useful in certain contexts, do not encompass the same level of direct assurance regarding a buyer’s financial readiness. A detailed personal financial statement may provide insight into a buyer's finances but lacks the formal validation that a pre-approval letter offers. A letter of recommendation from a bank does not directly indicate the buyer's purchasing ability, as it may not involve any financial commitment. Lastly, proof of employment for six months indicates job stability but does not by itself demonstrate financial capacity or readiness to make a purchase.