If you’re looking to buy a property, you might be asked early on to provide proof of funds. But what exactly does that mean—and why do estate agents insist on it?
Simply put, proof of funds refers to documentation that shows you have the money available to complete the property purchase. Estate agents ask for proof of funds to confirm that you’re a serious buyer who has the financial means to move forward.
In Stoke-on-Trent and across the UK, estate agents use proof of funds as a way to protect sellers from wasted time and ensure the transaction process can proceed smoothly.
What Counts as Proof of Funds?
The most common examples include:
- A recent bank statement showing available cash
- A mortgage agreement in principle
- Confirmation of a gifted deposit
- Evidence of shares or investments being sold
You may need to supply more than one document depending on how you are funding your purchase.
Why Is Proof of Funds Important?
Estate agents have a duty to the seller to qualify all buyers. Proof of funds helps agents:
- Prevent delays later in the sale process
- Reduce the risk of transactions falling through
- Identify any issues early, such as incomplete funding
It’s also part of the legal anti-money laundering checks estate agents must carry out.
When Will You Be Asked?
Most buyers are asked for proof of funds when making an offer. In competitive markets like Stoke-on-Trent, having this ready can give you a clear edge.
At Belvoir Stoke-on-Trent, we guide all our buyers through this process clearly and professionally. It’s a standard step—but an important one—in making your property journey a success.
