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

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

Step 1

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

Step 2

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

Step 3

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.

Step 4

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.

Step 5

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.

Step 6

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

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