Proof of funds is going to be a 3rd party documentation of liquid or liquidatable money that you have readily available, such as a statement from your bank, escrow receipt, etc. This is not the same as a pre-approval letter. When making an offer on a home, the seller is going to want to know that you have the cash, if it is a cash offer you are making. Sellers ask for this (or a pre-approval letter if you are financing) to ensure they are only showing their home to legitimate, qualified buyers who have the ability to close. Otherwise anyone could ask to see a home, insinuate they would pay cash, and now that seller has let a stranger in to their home who very well could have bad intentions, or simply can not actually buy their home. Not to be negative, but it happens. The seller will want to know that the prospective buyer has provided a Realtor with some documentation to demonstrate that they can in fact pay cash if interested in the home.
If you need any additional help, I'd be happy to help. I'm a native of Cape Coral, on call 7 days per week for my clients, and have a 16 year history as a Mortgage Broker before being a Realtor, so I can pretty much cover all of the bases for you.
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