Are you planning to buy a house? Well, if yes maybe you should prepare all documents early for a better and smooth buying experience. One of the documents required for the purchase of a house or a property is Proof of Funds.
But what if your assets are in different forms? Can Stocks be used as proof of funds?
What is Proof of Funds?
Proof of Funds (POF) is a document that proofs a person’s or company’s financial ability for a transaction. The main purpose of the POFs is to ensure that funds available for the transactions are available and legitimate.
POFs are generally required by a person to make large purchases such as buying a house. The POFs ensure that a buyer is financially capable to pay the decided amount.
A Proof of funds letter is proof that a buyer has enough money to pay the down payment and closing cost.
A POFs letter includes,
– Banks name and address
– An official bank statement
– Balance of total funds
– Balance of funds in the saving and checking accounts
– A copy of the online bank statement
– Signature of an authorized bank employee
Can stocks be used as proof of funds?
Yes, stocks can be used as proof of funds. Proof of Funds (POF) is a document that proofs a person’s or company’s financial ability for a transaction.
But you should be able to sell those easily. Or you should have a certificate showing your per month dividends.
What funds qualify as Proof of Funds?
There are several types of funds that are accepted as POFs:
- Savings are widely accepted POFs as it is an official statement from the bank. IT shows your bank statement for the last 6 months.
- A pension can also be used a proof of funds. All you need to produce a copy of your pension document and a copy from your bank stating that money is received.
- Shares: A copy of the share sell schedule and a copy from the bank stating that the money is received.
- Sales of another house/property: If you want to use another property as POF, then you need a copy of the selling success and a copy of your bank statement.
- Heritage: A document showing how much you are inheriting and a bank statement.
- Even money received from gambling, compensation awards, and settlement price and oft can be used as POFs.
In general, you should be able to produce a document as proof of your liquid capital source and a bank statement showing that you are receiving that same amount.
How to get proof of funds?
You can receive your POFs fund letter easily from a Bank. Here are some simple steps to get a Proof of funds letter:
- First of all, if your money is indifferent bank make sure to move them into a single account.
- Request your Bank for a POFs letter
- Usually, it takes 1-4 business days to get a POFs letter.
You can also use your Bank statement as POF if your money is in one place but then you might need to take some precautions as it will contain some of your details.