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What is Proof of Funds? Why do estate agents ask for it?

When you place an offer on a property the estate agent will ask you for proof of funds. What they are looking for is written proof that you have access to sufficient funds to complete the purchase of the property you are bidding on.
Why do agents ask for proof of funds?

By allowing only those buyers who have provided proof of funds to place a bid, the selling agent avoids a situation where one bidder, who doesn’t actually have the means to buy, is driving up the price for those genuine buyers who actually are in a position to fund a purchase.
How can proof of funds be shown?

  • An agreement in principle/mortgage in principle.
  • Bank statements of your deposit amount (for mortgage buyers).
  • Bank statements of your cash amount (for cash buyers) Alternatively a letter from your bank or solicitor confirming a cash balance of at least your offer amount is also acceptable.
  • Evidence of you selling a property (if using the funds to buy the new property).
  • Evidence if the money has been gifted.

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