An account statement or letter from your money manager validating adequate cash is ready and available for the purchase of real estate.
When you make an offer, sellers will require you to submit proof of funds.
What qualifies as proof of funds?
- Original or online statements
- Certified financial statements (signed off on by an accountant)
- An open equity line of credit
What doesn't qualify as proof of funds?
- Borrowed money from a relative that isn't under your name (ex: if it's still sitting in their bank account)
- Proof of income (W-2 forms, paystubs)
In order to be valid, proof of funds should be recent, clearly show the balance, and be in the name of the person making an offer.
How much should my proof of funds be?
Your proof of funds should show that you have the cash to make the entire purchase or downpayment (depending on financing) and closing costs based on your offer price.
Why do sellers ask for proof of funds?
It shows sellers that you're a serious buyer who can deliver on the offer you're making. It gives them evidence and confidence that your offer is legitimate.
How can I keep my proof of funds safe and secure?
When you upload proof of funds, we take your privacy very seriously. We encourage you to black out any sensitive information, such as account numbers or social security numbers.
Get in touch with us if you need any additional help or have any more questions on uploading proof of funds.