Once you’ve made a decision to purchase your first home or a new home, your next step is to apply for a loan and receive a proof of funds. This letter proves that you, the home buyer, has enough liquid cash to purchase a home. It is an essential letter to show home sellers to ensure you are a qualified buyer. It will also help your real estate agent show you homes within your budget.
Does Everyone Need a Letter?
The short answer is yes, everyone needs a letter. Even if you are getting a mortgage you will still need enough money for your down payment and closing costs.
What is the difference between a proof of funds letter and pre-approval letter?
The preapproval letter is a commitment from a lender to provide a buyer with a home loan. A proof of funds letter is a document that shows where you’re keep the cash you need to bring to the closing table.
A proof of funds letter can be provided to you by your bank. Contact your bank to request one today.
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