Proof of funds

Definition

Documentation that your cash for the deal exists and is yours.

Why It Matters

Brokers filter first inquiries on it, so having a current statement ready is the difference between reading the CIM this week and getting a form reply. Screenshots and verbal assurances do not count, and neither does a balance you would have to borrow against. Prepare a redacted PDF showing the institution, the date, and the balance but not the account number, and pair it with a lender prequalification letter: together they answer the only two questions a broker has about a stranger.

In numbers: A broker asking for proof of funds wants to see the $150,000 injection actually exists: a statement dated this month, balances visible, account numbers redacted. A screenshot of a brokerage app from last quarter reads as a buyer who is not ready.