Proof Of Funds(POF) is a document that demonstrates that a person has the ability and funds available to use for a transaction. It usually comes in the form of a bank, security or custody statement. The purpose of the document is to ensure that the funds required for the transaction are obtainable and legitimate. We want to see evidence that the homebuyer actually has a down payment and / or closing costs in the case of home mortgage loans before agreeing to discuss client enquiries further and/or scheduling a face-to-face meeting if need be.
Closing costs pay for items such as title policies, recording fees, inspections, Courier/Delivery, client account/file setup, Notary, Wire fees, Legal fees, Valaution fees. It is the fees a lender charges to make a loan. As a rule of thumb, closing costs to buy a home run about 2 to 5 percent of the purchase price.
Types of documentation accepted:
• Original bank statement in the name of the prospective borrower
• Copy of money market account balance, from a licensed intermediary or financial institution
• Certified financial statement