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How to Show Proof of Funds to Buy a House With Cash

by Steve Lander

All-cash offers are powerful. Sellers like them because they eliminate the risk that the buyer won't qualify for the loan, the property won't appraise or that something else will go wrong with the mortgage. On the other hand, an all-cash offer by itself is just a piece of paper. When you attach a proof of funds letter to it, though, you certify that you're not just making an all-cash offer but that you can also show up at the closing an all-cash buyer.

Deposit enough money in your bank account to close the transaction. While you could have multiple letters from multiple banks that add up to the purchase amount, it's more simple to have a single large account from which you can make the purchase.

Contact your bank and request a proof of funds letter. These letters are on bank letterhead and signed by a bank officer. Proof of funds letters come in many different types, but a "verification of deposit" letter should be more than adequate. Verification of deposit letters usually contain information such as the balance at the time of the letter, an average balance and an account number.

Attach your proof of funds letter to your offer. That way the seller can see it at the same time as your offer. This is particularly important if you are trying to buy a bank-owned property.

About the Author

Steve Lander has been a writer since 1996, with experience in the fields of financial services, real estate and technology. His work has appeared in trade publications such as the "Minnesota Real Estate Journal" and "Minnesota Multi-Housing Association Advocate." Lander holds a Bachelor of Arts in political science from Columbia University.

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