What Proof Do I Need to Make a Cash Offer?
A recent statement or bank letter showing enough available money for the price and closing costs, with account numbers hidden. What counts, what doesn't, and why sellers ask before they accept.
Usually a recent bank or brokerage statement, or a letter from your bank, showing enough available money to cover the full price plus closing costs, in your name or your buying entity's, with account numbers blacked out. Sellers ask for it because a "cash offer" with no proof is just a promise. Send it with the offer, not after.
What counts as proof of funds?
- A recent statement (checking, savings, money market or brokerage) showing the balance.
- A bank letter on letterhead confirming available funds.
- Combined accounts, as long as the total covers the purchase and closing costs.
- For an LLC or trust, statements in that entity's name, plus paperwork showing you can sign for it.
What usually doesn't count?
- Money that depends on another sale that hasn't closed.
- Retirement accounts you can't easily withdraw from, unless you show how you'll access the money.
- Screenshots with no name, date or institution.
- Money you'd have to borrow, unless it comes with a lender's approval.
How do I protect my information?
Black out account numbers. Send it to the agents through a secure method, not a group text. Don't share login access, ever.
What about the deposit?
Your deposit is written from your own funds and held in escrow under the offer and purchase and sale terms. Don't count on moving it around or rewriting it later. Plan it from the start.
What does this look like in practice?
When I'm helping a seller weigh offers, a cash offer without documentation gets a polite request before we go any further. When I'm representing an investor, I make sure the proof of funds goes in with the offer so the seller takes us seriously from the first read.
Questions people actually ask.
Do I need proof of funds if I'm getting a mortgage?
You'll need a pre-approval, plus proof of your down payment and closing costs.
How recent does the statement need to be?
Usually within the last 30 days. Ask the listing agent if they have a requirement.
Will a cash offer get a discount?
Sometimes. Certainty and speed are worth something to many sellers, but not unlimited money.
This article is general information about Massachusetts real estate, not legal, tax, or financial advice. Every property and transaction is different. For advice on your situation, talk with me and, where appropriate, an attorney, lender, or tax professional.