Partner Funding Request Form
The proof of funds document verifies the legitimacy of a purchase offer by demonstrating that the potential buyer has sufficient funds to execute the deal.
As a simple example, let’s imagine that you’re purchasing a home and need to obtain a mortgage.
Upon expressing your interest in buying the home, the subsequent step is to provide certain documentation requested by the seller.
Sellers often request a POF letter to ensure the buyer has enough cash available to cover the purchase costs of the home, which can include:
- Down Payment
- Escrow
- Closing Costs
Unless the buyer can prove it has adequate cash, the seller is unlikely to proceed with the sale process.
Here, the buyer would likely share documentation such as:
- Recent Bank Statements
- Letter of Recommendation from Previous Landlords
- Signed Letter from Bank on Liquid Funds Available
- Background Check from Credit Agency
The buyer’s credibility can be assessed by the seller using these documents to eventually determine if the purchase offer is viable.
Proof of Funds Letter