Proof of Funds Letter: What It Is & Why You Might Need One

KEY TAKEAWAYS

• Proof of funds letters are prepared by your bank or financial institution and prove to a seller that you have the money to purchase their home.
• Lenders may also ask to see proof of funds letters before approving a mortgage.
• Proof of funds letters differ from other homebuying documents, including mortgage preapproval letters and proof of deposit letters.
• Some sellers may accept bank statements or investment account statements instead of a letter from your bank.