🦚 Homebuying ABCs: P is for Proof of Funds (Peacock Power Edition)

Feathers out, numbers up. Proof of Funds is the art of showing confidence without saying a word.

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Why Proof of Funds Matters

When it comes to buying a home, one of the most powerful parts of your offer isn’t the price tag—it’s the confidence you bring to the table. That’s where Proof of Funds comes in.

Think of it as your real estate peacock moment. This is your chance to fan those feathers and show the seller and their agent that you’re ready, qualified, and serious about closing.

Proof of Funds (POF) is the answer. It reassures the seller that your offer is not just words on paper but backed by liquid assets. Whether you’re a first-time buyer, moving up, downsizing, or buying a second home, strong proof of funds makes your offer stand out and helps get you to “yes.”

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What Counts as Proof of Funds? ✅

Only three parties see these documents:

• Me (your agent and fiduciary)
• The listing agent
• The seller

For security, we always redact account numbers and sensitive details. What matters most is that the balance is clear and sufficient—and that the name on the account matches the buyer(s) on the contract.

• If you’re purchasing as an individual, the statement should clearly show your name.
• If you’re purchasing through an LLC, trust, or other entity, you’ll need supporting documents that connect the entity directly back to you as the buyer (e.g., trust certification, entity docs, or an operating agreement).

Here are common examples of acceptable proof:

• ✅ Bank account statements (checking, savings)
• ✅ Investment or brokerage accounts (liquid positions)
• ✅ Retirement accounts (with accessible funds)
• ✅ Business accounts (for self-employed buyers)
• ✅ Gift letters (with liquidity proof from the giver)
• ✅ A letter from your financial advisor, wealth manager, or CPA (especially for high-net-worth buyers or when using entity funds)

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💡 Bonus Tip: Buying Through an Entity
Some buyers purchase through an LLC, trust, or other entity for privacy, liability, or estate-planning reasons. If that’s your path, sellers simply want to know that the entity is legitimately tied to you and has access to the funds.

This usually means:

• Entity docs or trust certification showing your connection
• Proof that the entity account itself has sufficient funds (or that funds can transfer in)
• Occasionally, a short letter from your CPA or attorney bridging the dots

Handled properly, this keeps your privacy intact while still giving the seller total confidence in your offer.

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Cash vs. Financing: How It Looks Different 💰

• All-Cash Offers → Your accounts should show purchase funds plus a cushion. Sellers love cash because it signals speed and ease.
• Financed Offers → Next best options in order of strength:
  1. A fully upfront underwritten pre-approval — the gold standard and the closest thing to cash. Because the heavy lifting is already done, these loans can sometimes close in as little as 15 days.
  2. A standard pre-approval — still workable, but not as strong. Sellers know the lender hasn’t yet verified everything, which can introduce more uncertainty and longer timelines.

In either case, you’ll also need proof of liquidity for your deposit, closing costs (around 2%), inspections, and post-closing reserves.

Pro Move: I’ll have your lender personally call the listing agent when we submit your offer—it reinforces that you’ve got a strong team behind you.

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Stay Organized, Stay Ready 📂

I recommend a secure shared folder (like Google Drive) so we can easily update or swap documents as needed. This way, when the right property hits, you’re not scrambling—you’re already peacocking with confidence.

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What NOT to Include ❌

POF is not the same as what lenders request. Sellers don’t need your paystubs, W-2s, or tax returns for an offer. Keep it clean, simple, and confidence-inspiring.

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Bottom Line 🤓

Proof of Funds isn’t just a requirement—it’s a strategy. It gives the seller confidence, strengthens your negotiating position, and sets the tone for a smooth transaction.

With the right preparation, we can make your offer shine like cash—even close in as little as 15 days.

As your fiduciary and trusted advisor, I’ll make sure your POF package is polished, professional, and positioned to win.

👉 Ready to position your offer for success? Book your VIP call here.