What Is Proof of Funds?
Proof of funds is a document that shows the buyer has the cash available to purchase your home. It’s usually a recent bank statement, a letter from a financial institution, or some form of official verification.
This is a standard part of real estate transactions, and a serious buyer should have no problem providing it. If someone hesitates or avoids sharing this information, that’s a sign to slow down and ask questions.
Why It Matters
- It verifies the buyer is actually able to purchase your home
- It helps you avoid wasting time with unqualified offers
- It brings clarity and confidence to the selling process
If a buyer cannot or will not provide proof of funds, it could mean they are not prepared to follow through — and that puts your timeline and plans at risk.
What to Look For
A strong proof of funds document should include:
- The buyer’s name or company name
- The name of the bank or financial institution
- A recent date, typically within the last 30 days
- A clear statement of available cash
Always take time to review it. If something doesn’t look right, trust your gut and ask for clarification.
When to Ask for It
You don’t need to wait until the sale is nearly complete. Ask for proof of funds before signing a contract. This simple step helps you avoid unnecessary stress and keeps the process focused on serious buyers.
Selling With Confidence
A clear and verified proof of funds document gives you peace of mind that the buyer is ready and able to follow through. It helps protect your time, your home, and your next move.
