{"id":782,"date":"2021-07-29T00:55:36","date_gmt":"2021-07-29T00:55:36","guid":{"rendered":"https:\/\/grandcityinvestment.com\/?p=782"},"modified":"2021-07-29T00:55:36","modified_gmt":"2021-07-29T00:55:36","slug":"proof-of-funds-pof-meaning-and-uses-of-pof","status":"publish","type":"post","link":"https:\/\/grandcityinvestment.com\/en_US\/proof-of-funds-pof-meaning-and-uses-of-pof\/","title":{"rendered":"Proof of Funds (POF) Meaning and Uses of POF"},"content":{"rendered":"

Proof of Funds (POF) Meaning and Uses of POF<\/h2>\n

What Are Proof of Funds (POF)?<\/h2>\n

Proof of funds (POF) refers to\u00a0a document or documents that demonstrate a person or entity has the ability and funds available for a specific transaction. Proof of funds usually comes in the form of a bank, security, or custody statement. The purpose of the proof of funds document is to ensure that the funds needed to execute the transaction fully are accessible and legitimate.<\/p>\n

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Understanding Proof of Funds (POF)<\/h2>\n

When an individual or entity is making a large purchase, such as buying a home, the seller usually requires proof of funds. This ensures not only that the buyer has the money available to make the purchase, but also has legal access to the funds, as the proof of funds comes from a verified authority, such as a bank. Particularly for the purchase of a home, the seller and\/or mortgage company wants to see if you have enough money for the down payment and the closing costs.<\/p>\n

\"Proof<\/p>\n

It\u2019s important to note that in the majority of instances, the proof of funds must refer to liquid capital, primarily cash. Certain investments, such as retirement accounts, mutual fund accounts, and life insurance, do not qualify as proof of funds.<\/p>\n<\/div>\n

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Requirements of a Proof of Funds (POF) Document<\/h2>\n

When providing a proof of funds document, there is certain information that is required to be included. The following are some of the most common pieces of information that will need to be disclosed on a proof of funds document:<\/p>\n