La Jolla · Buyer guides · Offer paperwork

Proof of funds in La Jolla: what sellers want to see

Short answer: On a big purchase, the seller wants to know the money is real. Proof of funds is a recent statement that shows you have the cash for the deposit, the down payment and closing costs. If you are borrowing, a letter from your lender goes with it.

When I write an offer with a buyer, the seller’s first question is simple: can this buyer really close? Proof of funds answers that question before anyone has to ask.

This guide is about the paperwork and how to share it. It does not tell you how much to put down or which loan to pick.

I’m Weston Clark, Founding Member of the Dickinson-Clark Team at Compass. I help buyers in La Jolla and coastal San Diego put offers together with clean, careful paperwork. You can talk about fees with Weston directly. This form does not give a commission quote.

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Related: Cash offers · Jumbo loans · Offer strategy · Wire fraud · Guides · Buying with non-cash assets · How to hold title · Buying in a trust or company · Earnest money deposit

What counts as proof of funds

Proof of funds is a statement from a bank or brokerage that shows money you can use now. Sellers usually look for three things on it:

• Your name, or the name of the trust or company that is buying.
• A recent date, so it shows today’s balance.
• Enough money for the deposit, the down payment and closing costs, the fees paid when the sale is final.

A screenshot of an app is easy to doubt. A printed statement or a letter on the bank’s letterhead is easier to trust.

If you are getting a loan

A pre-approval is a letter from a lender that says how much it is willing to lend you, based on what it has checked so far. It goes with your proof of funds for the cash part.

The federal consumer agency (CFPB) puts it plainly: “These letters provide useful information about your likelihood of getting a loan but are not guaranteed loan offers.”

That is why I ask buyers to talk to the lender early. Then the letter is based on real papers, not a guess. For larger loans, see my jumbo loan guide.

Cash buyers

A cash buyer still needs proof. The seller wants to see the full price plus costs in accounts you control.

If the cash sits in more than one place, we send more than one statement. If part of it still has to move, say so up front. My cash offer guide walks through the rest.

How to share it with care

• Black out account numbers. Leave your name, the bank name, the date and the balance.
• Send it to me, not to a long email chain. I share it with the seller’s agent only when we make the offer.
• Never send money because of an email alone. Call a number you already trust first. My wire fraud guide explains why.

Where it fits in the offer

Proof of funds is one page of the offer package. The price, the terms and how fast you can close matter too. My offer strategy guide covers the full package.

When two offers look close, clean paperwork can help a seller choose with less worry.

General information only

This guide explains paperwork and process. It is not legal, tax, lending or financial advice. Ask your lender and your own advisors about your own money.

More on sandiego.homes

• Cash offers: paying without a loan
• Jumbo loans: larger home loans
• Offer strategy: the full offer package
• Wire fraud: moving money with care

• More: All guides · La Jolla · Real estate terms

Talk with Weston about your offer paperwork

Tell me how you plan to pay — cash, a loan or both. I’ll help you put the proof together before we write the offer.

Or call (858) 997-8998 · weston@sandiego.homes · Search on Compass

Free tools: What is my home worth? · What would I take home? · Real estate words in plain English

Have another question? Quick answers to common questions

Sources

• CFPB — Prequalification vs. preapproval letter
• sandiego.homes — Cash offers
• sandiego.homes — Jumbo loans
• sandiego.homes — Wire fraud