Source of Funds Statement

[ryan_gz]

Hi guys

The seller has asked for a Source of Funds statement. Not a REBNY form (they already have this).

Do you have an example of what a Source of Funds statement would look like?

Thanks

[aslan]

Hi Ryan, do you mean proof of funds? If so, that is a more common request and you can simply send over bank statements or investment account statements showing that you have enough cash for the purchase. You can cross out your account number at this stage if you’d like for privacy.

If they’re actually looking for the source of your funds, as in where a large deposit came from, I’ve only seen that asked very occasionally by a bank when the buyer had a large deposit within the last two months (remember they typically only look at the two latest monthly statements). I’ve never seen a seller ask for this level of detail.

However, if that is what they are indeed asking for, then I would simply write a simple paragraph explaining where the large recent deposits in your bank statements came from, and perhaps add a sentence about where the rest of the money came from (i.e. from regular paychecks).

Depending on how crazy the request is, the bank or seller in this case may ask to see the bank statement of the person who gave you the large deposit as well. I wouldn’t volunteer this unless absolutely necessary as I think it’s a gross overstepping of bounds and an invasion of personal privacy.

[lower_nyc]

Proof of funds for the offer stage is pretty simple. Most listing agents will want to see some sort of bank/brokerage statement or screenshot which shows you have enough cash available for the contract deposit which is usually 10%.

Listing agents want to see this so that they know there won't be any delays to contract signing as you try to come up with the money!