Quick Answer
Sellers, especially in competitive situations, often want more than your word that you can close. Proof of funds is the document that backs it up: recent account statements or a lender letter showing the money is really there. On a cash offer, it usually replaces the loan approval a financed buyer would provide.
- Typical form
- Recent bank or brokerage statement, or lender letter
- Who asks for it
- Sellers and listing agents, often before accepting an offer
- Most important for
- Cash offers and competitive multiple-offer situations
- How current
- Usually within the last 30 to 60 days
When You'll Need It
Proof of funds is standard for any all-cash offer, since there's no lender approval to lean on. It's also increasingly requested alongside financed offers, both to show your down payment is real and to strengthen your offer in a competitive market.
Investors making investment offers are asked for it especially often, since sellers want confidence the deal will actually close.
What It Typically Shows
Most documentation is a recent statement from a bank, brokerage, or retirement account showing a balance that covers the purchase, sometimes combined with a letter from your bank or lender confirming the funds.
Sensitive details like full account numbers are usually redacted; the goal is simply to confirm the money exists and is accessible, not to share your full financial history.
Questions About Your Situation?
We'll walk you through it in plain English — no pressure, no obligation.
Frequently Asked Questions — Proof of funds
Is proof of funds the same as a pre-approval letter?
No, a pre-approval letter is from a lender about a loan; proof of funds shows actual cash available, whether or not a loan is involved.
How recent does my documentation need to be?
Sellers typically want something dated within the last 30 to 60 days, though exact expectations can vary by offer.
Do I need proof of funds for a financed purchase?
Often yes, at least for your down payment and closing costs, alongside your loan pre-approval.
Can I redact information before sharing it?
Yes, it's standard to black out account numbers and unrelated balances, showing only what's needed to confirm the funds.