Final answer:
A Seller's Net Return form serves as proof of available funds from a home sale for a down payment on a subsequent home purchase, showing the seller's equity after deducting expenses related to the sale.
Step-by-step explanation:
A Seller's Net Return form can indeed be used by a seller as proof of the funds that will be available for a down payment on the next home purchase. This document typically shows the proceeds from the sale of a property after accounting for all expenses, including outstanding loan balances, seller's closing costs, and real estate commissions. It essentially reflects the seller's equity in the property, which can then be applied to the purchase of a new home. While a 20% down payment is traditionally advised, options for lower down payments exist, though they may require additional costs such as mortgage insurance. The seller's net return would be key in demonstrating to lenders the ability of the seller to cover the down payment and any associated purchase costs of the next property.