Proof of Funds
Proves your buyer has the money to close, using a recent account statement or a note from their bank.
What it is
Proof of funds is a document that shows a buyer has enough money available to buy the home. For a cash offer it needs to cover the full price plus closing costs. For a financed offer it needs to cover the down payment and closing costs. Sellers use it to judge how solid an offer is before they accept it.
When it's used
- Sent with every cash offer so the seller knows the money is real
- Sent with financed offers to show the down payment and closing costs are covered
- Asked for again by escrow or the lender if the balance changes before closing
What's on it
- The account holder's name, matching the buyer on the offer
- The bank or institution name and contact details
- The available balance in liquid funds such as checking, savings or a money market
- A recent date, usually within the last 30 days
Tips and common mistakes
- Black out the account numbers, but keep the name, bank and balance visible
- Retirement accounts and stocks may need extra steps to turn into cash, so say so up front
- Funds that came in recently may need a paper trail showing where they came from
- If the money is a gift from family, the lender will usually ask for a gift letter too
How your Akoni VA handles it
Your VA collects the statement or bank letter from the buyer, checks that the name and amount match the offer, blacks out account numbers and sends it with the offer package.
This page is general information to help agents and clients understand the form. It is not legal or tax advice. Forms and rules vary by state and change over time, so always use your brokerage's current version and check with a qualified professional.