What proof of funds from a cash buyer should look like
A cash offer is only as good as the cash behind it. Here's what to ask for and how to check it yourself.
No obligation. No pressure. Takes about 2 minutes.
The short answer
Proof of funds is a recent document showing the buyer has the money to close, usually a bank or brokerage statement or a letter on the bank's letterhead. The name on it should match the buyer on your contract, and the funds should cover the price plus the buyer's closing costs. You can confirm it by calling the bank at a number you look up yourself, and by checking with the title company that the buyer's deposit arrived.
Step by step
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1
What it should show
The buyer's name, matching the person or company on the contract; the bank's name; a recent date; and available funds that cover the price and the buyer's costs. Account numbers can be partly hidden.
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2
Letter or statement
A bank letter confirms funds on a certain date; a statement shows the balance. Either works if it's current and the names match. A phone screenshot, or money in someone else's name with no explanation, deserves questions.
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3
Verify it yourself
Find the bank's phone number on your own, not from the letter, and ask whether they'll confirm the letter is genuine. A bank may confirm the document without sharing the balance.
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4
Watch the deposit
A deposit that reaches the title company or closing attorney by the contract deadline is a practical sign the buyer is real. Ask the settlement agent to confirm it arrived.
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5
Borrowed money is still possible
Some buyers who call themselves cash buyers use private lenders or investors. That can be fine, but ask whose money it is and whether the contract depends on getting it.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
Once you know a buyer can pay, the next question is price, which is why we show the cash offer next to what listing could net.
Frequently asked questions
Is it rude to ask a cash buyer for proof of funds?
No. It's a normal request, and a serious buyer expects it.
What if the proof of funds is in a different name?
Ask why. If a company is buying, the account should belong to that company, or the buyer should explain where the money comes from, for example with a lender's written commitment.
How recent should it be?
There's no single rule. Ask for something current enough that you're comfortable, and check again close to closing through the title company.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.