How do you show proof of funds for a cash offer? If you’re planning to purchase a home with cash, be prepared for the seller to ask you for proof of funds. Proof of funds is a document that shows you have enough money to purchase the home.
In this post, our Colorado Springs realtors at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team will cover several types of documents that you can use as proof of funds.
Key Takeaways
- Official bank statements showing the account balance in your checking, savings, or investment accounts are one of the best proof of funds documents.
- If you’re planning to purchase a home using funds from an investment or securities account, you’ll need a brokerage statement to show the value of your holdings.
- A proof of funds letter is the most common way to demonstrate you have enough funds, and it usually accompanies an official bank statement. A proof of funds letter is a formal letter from your financial institution.
How Do You Show Proof of Funds For a Cash Offer?
Bank Statements
Official bank statements showing the account balance in your checking, savings, or investment accounts are one of the best proof of funds documents. The statements usually accompany a proof of funds letter from your bank, but in some cases, they can be enough on their own. The statements should include your name, current date, and account balance but conceal any sensitive personal information.
Brokerage Statements
If you’re planning to purchase a home using funds from an investment or securities account, you’ll need a brokerage statement to show the value of your holdings. Similar to bank statements, this should be an official document from your brokerage firm that includes your name, date, and current availability of assets in your account.
Proof of Funds Letter
A proof of funds letter is the most common way to demonstrate you have enough funds, and it usually accompanies an official bank statement. A proof of funds letter is a formal letter from your financial institution that has your bank’s name and address, the balance of funds in your account as of the current date, and a signature from a bank employee. The letter should be dated the day you make the offer, demonstrating that the funds are in your account currently.
Proof of Liquidation
If you’re planning to use funds from the sale of a property or other physical asset, provide relevant documents showing that you’re planning to liquidate the assets. Or if you’ve already sold them, provide documents showing the available funds that came from the sale.
A Certified Check or Money Order
You can also use a certified check or money order to show proof of funds. This isn’t the best way to show proof of funds, as you’ll need to provide additional documentation that verifies the source of the funds. However, a check also has the benefit of showing you have serious intentions about purchasing the property.
Buy or Sell a Colorado Springs Home for Cash with Barb Schlinker
If you’re looking to buy a home for cash in Colorado Springs, Barb Schlinker and our team at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team can help. With 30+ years of real estate experience, our real estate team has handled many cash transactions and helped hundreds of buyers find their dream homes.
On top of our experience, we also offer a unique Buyer Satisfaction Guarantee to protect your interests. With this guarantee, you can purchase a home risk-free and make sure it fits your budget and preferences.
Want to learn more? Call the best realtor in Colorado Springs at 719-301-1802 and get ready to start packing!
To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!
