Why you need a Proof of Funds Letter

If you’re looking to purchase a property for a fix-flip or for a Rental, you’ll probably need to provide to the seller a proof of funds (POF) letter.? This document shows that the prospective buyer has enough liquid assets (assets that can be quickly converted to cash) too cover?down payment and the?closing costs.

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What Are Proof of Funds (POF letter)?

Proof of funds (POF) refers to?a document or documents that demonstrate a person or entity has the ability and?funds available for a specific transaction. Proof of funds usually comes in the form of a bank, security, or custody statement. The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are accessible and legitimate.? Basic information such as the bank name and address, bank statement, total balance amounts, and a bank personnel's signature is required on the proof of funds document.

Secure your Proof of Funds, and get an advantage when bidding on properties.

By securing a proof of funds letter before bidding on Properties, You’ll know the exact loan amount and rate you qualify for. Your offers will be stronger compared to other bidders without a POF letter.

Requirements of a Proof of Funds Documents

When providing a proof of funds document, there is certain information that is required to be included. The following are some of the most common pieces of information that will need to be disclosed on a proof of funds document:

• Bank's name and address
• Official bank statement
• Balance of funds in the checking and savings accounts
• Balance of total funds
• Signature of authorized bank personnel
• Verification of the date of proof of funds letter

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Contact US for a Proof of Funds Letter:? Eric?? [email protected]

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