What is a Proof of Funds letter?
A Proof of Funds letter is a document that shows a person or company has the money available for a specific transaction. When homeowners list a property for sale, they often receive countless offers from different buyers and investors. A proof of funds letter with your offer shows the seller that you have the funds available for the purchase of their property if certain conditions are met.
What’s the Benefit of using a POF Letter?
When you use a proof of funds letter, this shows the seller that you are better prepared for the purchase of the property than offers made without one. As a result, this makes you stand out, giving the seller more confidence to put their property under contract. In fact, some sellers ignore offers without a POF letter attached.