proof of funds letters????

[Jerome Davis]

I want to put a house under contract... i need the earnest deposit money and a proof of funds letter... i have to earnest deposit money but I need a proof of funds letter. How do I to this?

[Jeff Copeland]

A proof of funds letter is a letter from your bank, or a bank statement, showing proof that you do in fact have enough liquid cash on hand to close on the cash purchase of the property for the contract you are signing. 

If you don't actually have the cash, then you can't really produce proof of funds. And a seller is not going to accept your "cash" offer if you can't prove you have the cash available to close.

Possible solutions are to use a hard money or transactional funding. They will normally analyze the deal and, if it makes sense, provide some form of proof of funds, and of course fund the deal at closing.

Somebody needs to prove they have the actual cash on hand to fund your cash offer, or it's not likely to get accepted. Put yourself in the seller's shoes - would you accept your offer without proof of funds?