A Proof of Funds is a document demonstrating that the client has a certain financial capacity. Different formats may include bank letters, TELEX or SWIFT confirmations, phone/fax verification, Certificates of Deposit (CD's), and/or account or custody statements.

The purpose of the document is to ensure that the funds required for the transaction are obtainable and legitimate.

Having proof that you have the funds required to complete a sale is an important part of the purchasing process. A seller wants to ensure that you will be able to complete the sale in a timely matter. If a property is a hot commodity on the market, showing that you have funds ready could be a big motivation for the seller to sell to you.