Why Do You Need a Bank Proof of Funds Letter?

Any major purchase, such as buying a new home or investing in a major project, can be a serious gamble for the seller. For this reason, many sellers require a proof of funds verification deposit to provide proof that the funds are available and will be paid as promised. If you need this type of proof, you need to find proof of funds providers willing to give you the documentation necessary to ensure the seller you can follow through on the purchase contract.

Deposit Proof

When you deposit funds into an account to cover a major purchase, it can take time for that money to clear, depending on the source. In situations where you recently deposited the money into an account, you will need to ask for a proof of funds verification of deposit. This documentation lets the seller know the funds are present for the purchase as soon as the deposit clears. In addition to providing proof that the funds exist, this documentation also gives sellers peace of mind that the money was obtained through legal means, giving them further protection from financial liability.

Ideal for All Major Transactions

There are many major transactions that can benefit from a bank proof of funds letter. Real estate is one of the most common uses for these documents. Buyers often need to obtain financing to fully fund their purchase, but they typically need to produce a down payment as well. Because the financing depends on this down payment for the buyer to qualify, it is important to prove the funds are available in the bank prior to completing the transaction. A letter from the bank provides this assurance.
Proof of funds providers ensure sellers have the evidence they need to feel confident in completing major transactions. The larger the transaction, the riskier the process becomes for the seller. The goal of a bank proof of funds letter, including a proof of funds verification of deposit, is to assure the seller that the funds are in the bank and available for use. It also provides protection for the seller from illegally obtained funds. This process is most often used in real estate transactions but can also be used for other major investments.