How To Get A Proof Of Funds Letter

If you’re getting ready to buy a home in Tampa Bay, the details of the mortgaging process can feel overwhelming. Thankfully, there will be plenty of people to help you figure it all out. Still, some of us like to be informed ahead of time. One of the things that you will be asked for when buying a home in Tampa Bay is to provide a proof of funds letter. This letter will show that you actually have liquid assets on hand to make sure that the closing process goes smoothly. If you don’t have the money for your down payment and closing costs, the closing won’t happen and everyone will have wasted their time.

Acquiring a proof of funds letter is actually really simple. The speed with which your bank will provide you with a proof of funds letter varies. Some banks take a couple of days, but my bank had the proof of funds letter available moments after I requested it. It shouldn’t take any more than two days, but allow yourself a week, just to be safe. You will have to send this proof of funds letter to the seller as you make the offer on the Tampa Bay home for sale that you plan to buy.

What’s Included In A Proof Of Funds Letter?

Your bank is completely familiar with proof of funds letters. So, they will know exactly what to do and what needs to be on it. They will get together a document that has your name on it, plus the current balance of your bank accounts. Sometimes you will need to provide the actual bank statement, but your real estate agent can help you figure out what you need. When the bank provides you with your proof of funds letter, it will come on bank letterhead. The document will have to be signed by an official at your bank. Most banks create proof of funds letters so frequently that they just add data into their own templates and they are done as quickly as they would finish a normal transaction.

Isn’t The Pre-Approval Enough?

Many buyers feel that a preapproval letter should be enough. It isn’t usually enough though, because the preapproval letter only shows that you’ve been pre-approved to get a mortgage in that amount. A proof of funds letter shows that you have enough liquid assets to actually pay for the process of the sale. You will likely need a proof of funds letter whether you intend to pay with a mortgage or as a cash buyer. They will need to make sure that you can follow through on the purchase either way. Sellers rarely take the home off the market until they actually receive the proof of funds letter from the potential home buyer.

How To Prepare In Advance For The Process Of Proving Your Funds?

If your money is coming from stocks and mutual funds, you won’t be able to include these assets on the proof of funds letter. So, if you need these assets to close on the home, you should remove them and deposit the funds into your bank account. See, the value of your stocks and mutual funds can fluctuate in a day or two, so what’s there today might not be there tomorrow. Similarly, if you planned to pull money from a few accounts to pay for your closing, it’s best to pool the money together into one account for the sake of simplicity. It’s much easier to show one proof of funds letters for one bank account than it is to show multiple letters from multiple accounts.


If you’re interested in selling a Tampa Bay area home, please contact us for more information about listing your home. Check out our helpful article describing the process and how to decide if it’s the right time to sell.


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Our experienced agents know the area and would love to find you the perfect home in the Tampa Bay or any of the surrounding areas.  When you’re ready, call us at 813-961-6000, or contact us online. We handle real estate in Hillsborough County (the Tampa – St. Petersburg – Clearwater metropolitan area), real estate in Pasco County (Port Richey, New Port Richey, Dade City, Zephyrhills and San Antonio), and real estate in Pinellas County (Tampa – St. Petersburg metropolitan area.) We’ll help you find the right home for your needs!