How to Get a Proof of Funds for a Cash Offer


A proof of funds (POF) letter is one of the most important documents that a cash buyer needs to present to a home seller or lender when making an offer. Like mortgage pre-approval letters, this document helps home sellers and lenders verify that the cash buyer is able to complete the purchase and pay off any liens on the property.

A POF letter is typically written by your bank on its letterhead and dated the day you make your offer. It includes your name and the amount of money you have in your checking or savings account. A recent bank statement can also be used as evidence of your ability to meet the purchase price.

The best time to get a POF is about a month before you make your offer. This is because the POF letter is designed to be used as a current record of your finances, so a year-old POF letter will not be as useful in confirming that you have the cash available to purchase the home.

It is a good idea to make the request for your proof of funds a few days before you plan to view homes in-person so that you can be sure to have it ready when you do find a home you want. Then, you can make your offer without any delay and you’ll have the most leverage in competing against other buyers who may be waiting to make their offers. Also read


Some buyers have their POFs ready a few weeks before they actually make an offer, so that they can be sure to have them on hand in case they do happen to find the perfect home. This is especially important for buyers in hot markets who might need to compete against other bidders who have already viewed the home and know they want to make an offer on it before you do.

While you can use a proof of funds letter to make your offer, you might be surprised how many times it’s actually not required by the seller or lender. If the seller or lender wants you to submit a proof of funds, it’s likely because they are concerned about the legitimacy of your offer.

Another reason for a seller to want proof of funds is that it can help them protect themselves against potential fraudsters. Some scammers will send out fake letters, claiming to have the funds needed to buy a home and asking for money up front.

A real estate agent can tell you if a seller or lender requires a proof of funds letter, but it’s best to check with them directly before you make your offer. They can also help you understand if a seller or lender is willing to accept an offer in cash, and how much proof of funds is necessary to convince them to accept your offer.


When to Give Your Proof of Fundsletter

While a proof of funds letter is not usually necessary for your purchase, it can be helpful in certain situations, such as immigration. Some governments require that a person prove they have enough money to support themselves before they can be granted a visa.

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