What is POF (Proof of funds)?

If you are buying a home these days, especially a short sale or REO (foreclosure), you will likely be asked to provide PROOF OF FUNDS (you may see this as POF in MLS listings).

Just as the seller wants to see a pre-approval to know you are qualified to obtain a loan, a seller (and almost always the bank) wants PROOF that you have the money for the down payment, or for a cash purchase. This can be copies of your bank statement (as recent as possible), your mutual funds statement, or similar. Be sure to block out your account numbers when providing this to your agent to submit with your offer.

All content copyright © 2010 Jeff Dowler “The California Relocation Dude”