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

Home prices fall and you may be able to pay cash.

Home prices fall and you may be able to pay cash.

With home prices set at more realistic values than a few years ago, you may be among the many Nesties ready to take the jump and buy a home. If you are one of the fortunate couples who will forgo financing and pay cash for your new home, be prepared to show proof of funds when you make your cash offer. When you have the funds ready to go, be prepared to provide proof to sellers that the funds are available.

Notify your bank that you intend to make cash offers on real estate.

Open an account with the funds intended for cash offers. Ensure that the account will enable the funds to be quickly liquidated.

Request a proof of funds letter from your bank. The letter must be composed on bank letterhead and must state the funds available in accounts with the institution.

Obtain three recent bank statements that show your available cash to meet or exceed the offers. Use printed bank statements or print the statements from online banking. The official printed bank statement is preferred. Request that the bank omit any account information, such as the account number.

Make your offer on the home of your choice. Write into the offer letter that the Proof of Funds letter and documentation will be provided to the seller within a specific time frame, such as 24 or 48 hours.

Provide the seller with the Proof of Funds letter and documentation after the offer has been accepted.


  • Though some real estate agents will tell you to include your Proof of Funds letter along with your offer letter, this could show the seller that you may be able to pay a higher price than the offer. Instead, make the provision of providing the proof of funds after your offer is accepted.


  • Proof of funds verifications are often utilized in fraud. Provide sellers with the information to run a background check on you and verify that you are making a legitimate offer.

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About the Author

Terry Parker is a writer based in Texas. She specializes in writing technical and marketing materials for a wide variety of clients, ranging from small businesses to Fortune 500 companies.

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