A Proof of Funds Letter is a formal statement prepared by a financial institution to confirm their client has enough money required to participate in a financial transaction - often, to show the seller of the real estate the purchaser is ready to provide them with necessary funds.
The potential buyer should request this letter from their bank or building society - the latter will then send a statement to the seller or real estate agent in order to show proof of funds from a particular bank account. Note that the client may have to pay a fee to obtain the letter from their financial institution.
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