How to verify proof of funds?
3,391I am helping my clients to see their house, and we received a cash offer, the buyer provide his bank statements showing the balance in the account, how can we verify if it is true, do we need authorization from the buyer in order to contact the bank for that?
15 answer(s)
About 1 year ago
For me it is usually provided on a bank letterhead and you can call the bank using that information.
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DislikeAbout 2 years ago
Ask the buyer to provide certified statement from their bank showing the current balance with their offer, then ask if you can call their bank directly to verify the proof of funds. If it is a legitimate offer, they will not have an issue.
About 2 years ago
Having the buyer get a certified statement from the bank is the easiest way!
About 2 years ago
Verify funds coming from the buyer’s bank account by calling the bank lender even if you are provided contact information for the bank lender, this allows you to verify if the bank institution and the lender are legit.
About 2 years ago
I have always used the most recent bank statement, but you can ask the buyer to get the bank to certify the funds.
About 2 years ago
Call the bank and ask for their representative. They have probably already spoken with their rep to let them know a large purchase is coming. Keep in mind too that cash buyers are not in the habit of losing their earnest money because they can't actually afford the property.
About 2 years ago
The most recent bank statement should work, but you can ask the buyer to get the bank to certify the funds.
About 2 years ago
I’ve never had any trouble by asking the Client to provide my phone number to their banking agent to call me. Or I can call the person by using their business line. The caller ID always matches. After I verify with them some fact of information no one else would know, we compare the balance and discuss the wiring process. We don’t discuss wiring instructions during this conversation.
About 2 years ago
You and seller can call the banks customer service number on a three way call, and they will usually place you on hold to call the buyer for permission to verify their funds to you. Just let the bank know who you are and Brokerage you are with.
source:
Personal experience
Personal experience
About 2 years ago
Be mindful about any letters or statements sent to you as Proof of Funds (POF). They can be created on a computer. Never call the number provided on the POF or email/text that’s provided as you could be calling an accomplice. I encountered this last fall. Now days, it’s easy to locate the baking institution’s number online. Once you do this then the bank can conference in the account holder as opposed to the account holder (buyer) starting the process. Scams are everywhere. Be careful.
About 2 years ago
If the funds are coming from the individual buyer’s bank account, the best way to verify their funds is by having the buyer provide contact information for a banking officer who can verify the data. If proof of funds is presented via a bank statement, ask the buyer who you can contact at their bank to verify the statement is authentic.
Abbas Naqvi
About 2 years ago
In the past, I have been successful in contacting the bank directly to verify funds. It also helps be specific as to what form you want the “proof” to be provided.
About 2 years ago
Usually the most current account balance with the bank stamp on it should be legitimate enough to confirm the fund or some bank will allow to print online the today account balance with URL on the bottom of the page.
About 2 years ago
Ask the buyer to get a certified statement from their bank showing the current balance.
About 2 years ago
You don’t need permission to verify funds but some banks will not do it without the account holder on the phone. If it’s a legitimate offer, ask the buyers to conference call the bank with you.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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