To get a proof of funds letter from your bank, contact the institution that holds your liquid cash through its online portal, customer service line, or a local branch and ask for a signed letter on official letterhead confirming your available balance. For straightforward personal accounts, most banks turn one around the same day at a branch or within one to two business days through digital channels. Established customers usually pay nothing.
How to Request the Letter
Start with whichever channel is easiest. Many banks let you submit a document request inside their online banking portal. You can also call customer service or walk into a branch. If you go in person, call ahead to confirm an officer with signing authority is on site so you don’t waste the trip.
Have this ready when you make the request:
- A government-issued photo ID. The name on your driver’s license or passport must match the name on file.
- The account number or numbers you want reflected on the letter.
- Transaction details if the letter is for a specific purchase, including the amount you need to show and any formatting the seller has asked for.
Complex business accounts or high-dollar verifications can take longer because of internal review. Some specialty and business accounts carry a small processing fee. If you need the letter delivered directly to a seller’s attorney, overnight mail typically runs $25 to $50, while a secure email copy is usually faster and free.
What the Letter Needs to Contain
For a seller or their agent to treat the letter as credible, it should include:
- Bank details: the institution’s official name, address, and phone number, printed on letterhead.
- Account holder’s name: your full legal name, exactly as it appears on your accounts and on the purchase contract.
- Account type: checking, savings, or money market.
- Current balance: the specific dollar amount available as of the date of the letter.
- Date of issuance.
- Bank officer’s signature, printed name, and title, along with the bank’s seal or stamp if available.
Name matching matters more than people expect. A minor spelling difference, a nickname, or a business alias that doesn’t match the account can cause problems at closing. If you recently changed your name, or you’re buying through a trust or entity, update your bank records before asking for the letter.
Which Accounts Qualify
Only liquid accounts qualify. Checking, standard savings, and money market accounts all work. So do cash management accounts at brokerage firms, as long as the funds are uninvested and immediately accessible.
Retirement accounts generally do not. Withdrawing from a 401(k) or similar plan before age 59½ triggers income tax plus an additional 10 percent early distribution penalty under Internal Revenue Code Section 72(t).1Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions Non-vested stock options, certificates of deposit with early withdrawal penalties, and funds locked in escrow are also out. The test is whether the money can move to the seller without delay or extra cost.
Joint Accounts and Business Entities
If the money sits in a joint account, the letter will list the account holders on file. A spouse or co-owner who isn’t part of the purchase may need to provide separate verification or consent, depending on your bank’s policies. Confirm with the bank and the seller’s agent that the arrangement is acceptable before closing, especially if only one of the account holders appears on the purchase contract.
Buying through an LLC, corporation, or trust adds steps. Under the Customer Due Diligence Rule, banks must identify and verify any individual who owns 25 percent or more of a legal entity, along with the individual who controls it.2Financial Crimes Enforcement Network. Information on Complying with the Customer Due Diligence Final Rule The bank may need current identification, formation documents, and operating agreements for every beneficial owner before it will issue the letter. Build a few extra days into your timeline if you’re buying through an entity.
How Long the Letter Stays Valid
Proof of funds letters are time-sensitive. Most stay valid for 30 to 60 days from the date of issuance, though some sellers accept letters up to 90 days old. The exact window depends on the seller’s requirements and what’s written into the purchase contract.
If closing runs long, expect the seller to ask for a fresh letter confirming your balance hasn’t dropped below the purchase amount. Request the update promptly. Because the bank already has your information from the first request, refreshed letters are usually quick to produce.
Proof of Funds Letter vs. Mortgage Pre-Approval
These two documents do different jobs, and many buyers need both. A proof of funds letter confirms cash you already have. A mortgage pre-approval letter shows a lender has reviewed your finances and is willing to extend a loan up to a stated amount. Pre-approval does not mean you have the money; it means a lender is likely to give it to you.
For an all-cash purchase, the proof of funds letter alone demonstrates financial standing. If you’re financing, the seller will typically want the pre-approval letter to show you can secure the loan and a proof of funds letter to confirm you can cover the down payment and closing costs. Submitting both together strengthens the offer.
Where the Letter Should Come From
Any regulated financial institution that holds your liquid funds can issue one. Large commercial banks, local credit unions, and online-only banks are the common sources, and federal oversight lends credibility to the document. A letter from a well-known, federally insured institution carries more weight with sellers than one from an unfamiliar source.
Online banks generally produce the letter through their digital portals, though some sellers or their attorneys insist on a physical signature. If that comes up, expect an extra day or two for the bank to mail or overnight the signed original.
Be careful with third-party services that offer to provide proof of funds letters by parking money in an account on your behalf. These arrangements charge steep fees and often draw suspicion from experienced sellers and agents, who may doubt the funds are actually yours. A legitimate letter comes from an institution where you hold your own money. Fabricating or forging a letter carries federal criminal exposure and gives the seller grounds to void the contract and sue for damages.