What is a proof of funds letter from a private lender?

A Proof of Funds Letter from a Private Lender is a letter is a statement signed that informs the seller of the buyer’s ability to fund the purchase. These are issued by hard money lenders such as Asset Based Lending, rather than the more commonly used pre-approval letter from a mortgage company.

What should a proof of funds letter include?

A proof of funds letter must include the following: Your bank’s name and address. An official bank statement, either printed at a branch or as an online statement. The balance of total funds in your accounts. The balance of funds in your checking or savings account. The signature of an authorized bank employee or notary.

What is a proof of funds letter (POF)?

Proof of funds letter (POF) is generally required by a seller who needs to verify that the purchasing party is financially capable of producing the funds required to buy from them. These are commonly used to verify that a home-buyer can afford to purchase a home.