Proof of Funds
Documentation verifying a buyer has sufficient liquid assets to complete the purchase, typically in the form of bank statements or a letter from a financial institution.
When Its Used
Submitted with the offer to demonstrate the buyer's financial capacity. Required for cash offers and often requested for financed purchases to verify down payment funds.
Key Sections
Account holder name matching buyer; Current date (within 30 days); Account balance sufficient for purchase; Institution name and contact
Common Mistakes
Outdated statements (more than 30 days old); Redacted information that hides the balance; Account holder name not matching buyer on contract; Insufficient funds shown
Pro Tip
Verify the account holder matches the buyer name on the purchase agreement. For cash offers, funds should cover purchase price plus estimated closing costs.
