How do you show proof of funds for real estate?

Home buyers can show proof of funds for real estate transactions with an official signed letter from their financial institution. But some parties only require bank statements for the prior three to six months showing proof of funds rather than a formal letter.

What is required for proof of funds?

A bank statement, total balance amounts, bank address, bank name, and bank signature are just some of the items required for proof of funds. In some cases a proof of funds letter may only need to certify that the borrower has sufficient funds to cover the specified home purchase amount necessary.

Can you show cash for proof of funds?

Cash is acceptable for proof of funds if it’s in an account. However, if you have “loose” money, you’ll need to deposit it into a bank or credit union account first. Then, ask for a proof of funds letter from the financial institution.

Is evidence of finances required to make an offer on a house?

While it is not required by law to submit a proof of funds letter to the house seller, the listing agent often urges the seller to request one along with the pre-approval letter.

How do I get a proof of funds letter?

Contact your bank to request a proof of funds letter. You may have to visit a branch in person. They can give you that information when you call. If you have multiple bank accounts, it’s best to consolidate the necessary funds into one account before requesting the letter.

Do I have to pay for a proof of funds letter?

Most financial institutions will provide proof of funds letters as part of their client services at no extra cost to you. But some do charge a small fee. Contact your bank or credit union early to learn more about their process and applicable fees.

Lydia Kibet

Writer

Lydia is a writer with a knack for personal finance and all things money. She's passionate about explaining complex topics in easy-to-understand language. Lydia has covered a variety of finance topics, including investing, insurance, banking, credit cards, mortgages, real estate, loans, saving, and retirement.

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