Proof Of Funds Letter

A proof of funds (POF) letter is a document that verifies your financial stability. It’s used in many different scenarios, such as when you’re looking to buy a house or submit an offer on a property. The benefits and requirements of having a POF letter will be discussed in this article.

proof of funds letter
A proof of funds letter can set you apart from other buyers

What is a Proof of Funds Letter?

A POF letter, also known as a verification of funds letter, is a document that verifies your ability to purchase real estate. It is provided to you usually by your mortgage company or a financial institution.

What Does the Letter Include?

A POF letter usually includes:

  • Your name and address;
  • The lender’s name and telephone number;
  • The property location;
  • The amount of funds available;
  • The buy price of the property that you will be making an offer on; and
  • An estimated closing date for the property.

A POF letter may include additional information, such as your employment information.


There are many different requirements for having a proof of funds letter in order to submit an offer on real estate. The lender will have their own specific requirements based on the type and amount you’re looking to buy.

Some examples include needing 20 percent of the purchase price of the property as a down payment and having and excellent credit rating.

How to Get a Letter

There are different ways that you can get your hands on a proof of funds letter. You will want to discuss it with your lender before getting one, so they know what type and amount need. If your lender doesn’t offer this service, there are other options available, such as:

  • An attorney or real estate company;
  • Someone with at least 25 percent equity in the property they’re selling (such as parents); or
  • A bank if needed.

Benefits of Having a POF Letter

There are many benefits to having POF letter when submitting an offer on real estate. One of the main benefits is that it shows that you are financially stable and able to purchase the property.

This increases your chances of having your offer accepted by the seller. If there are multiple offers, this letter allows you to stand out from the pack. POF letters make your offer more attractive to the seller. They know you have the funds to make the purchase!

Another benefit is that it can be used as a backup plan. If your lender denies or changes their requirements for getting a loan, you can still verify your financial standing.

Why? Because this letter verifies your financial stability to buy real estate, regardless if you get financing from a bank.

Is a POF Letter the Same as a Pre-Approval Letter?

A proof of funds letter is different from a pre-approval letter in many ways. A POF letter is a document that verifies your financial stability and that you have the funds available to purchase real estate.

A pre-approval letter is an official statement from the lender stating that you may qualify for financing of up to a specific amount. Your qualification will depend on things such as your:

  • Credit score
  • Income level
  • Debt ratio
  • Other criteria


A pre-approval letter is used by the seller to determine if you’re a reliable buyer with adequate funds to purchase real estate. This is why it is important that your pre-approval letter includes accurate information, including how much money you can qualify for and what type of property you’ll be purchasing.

pre-approval from you bank requires more criteria

As previously stated, a POF letter lets the seller know that you have the funds available to purchase real estate. This is important because while a pre-approval letter lets the seller know you qualify for the funds, the POF letter lets the seller know that you actually “have” the funds available to purchase the property.

What is a Soft Verification Letter?

A soft verification letter is a letter from the lender that is used for pre-approval purposes. The soft proof of funds letter states an approximation as to what you may qualify for, but it does not include specific details such as interest rates and monthly payments.

This type of document lets the seller know that you have been approved by a lending institution, which will help you stand out from other buyers during the offer process.

How Long is a POF Letter Good Valid?

A POF letter is usually good for 30 days, but this can depend on the lender.

It’s important to check with your lender before getting a proof of funds letter so you know how long it will be valid. If an issue arises, reaffirming your financial stability with the seller is usually the best way to proceed.

Get Your Proof of Funds Letter

You’ve learned that proof of funds letters are a fantastic way to show your financial stability when submitting an offer on a property.

And now, you can get a proof of funds letter instantly! Click the button below to purchase and you will be instantly verified to impress the seller and secure your newest property. What are you waiting for?

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