Understanding A Proof Of Funds Letter For Los Angeles Investments

by | Feb 7, 2014 | Business

When it comes to a Proof of Funds letter Los Angeles banks, financial institutions or specific types of credit or capital companies can help a potential buyer or investor complete the transaction. They are able to generate the Proof of Funds letter than basically confirms that the individual requesting the letter has the funds on hand that they claim.

The Purpose of a Proof of Funds Letter in Los Angeles Transactions

A Proof of Funds letter for Los Angeles investments must also clarify and guarantee that the money in the account is legally available and has not been illegally deposited in an attempt to defraud or mislead the other party. This is an essential consideration for the seller or investor to validate the credit that the buyer actually has on hand.

Essential Elements in a Proof of Funds Letter

There are several elements that need to be included in the letter. The first is that the position and company of the author of the Proof of Funds letter from a Los Angeles bank or financial institute be clearly indicated. Typically out of town, state and country Proof of Funds letters should have all the necessary contact information for the author. This may be contained on the letterhead or in the closing.

The letter will indicate the specific amount of available funds for the client and the date on which this total was obtained. In addition, and most importantly, the financial professional preparing the letter has to also state that the funds are free of any encumbrances such as liens, holds or debts and are immediately available to the client.

What Is Not Included

For security reasons a Proof of Funds letter from a Los Angeles bank or financial institute will not include account numbers or your personal identification numbers. If an actual account statement is required for some reason the account numbers and any personal identification codes or numbers will be blacked out prior to being sent.

Obtaining a Proof of Funds Letter from Los Angeles banks and financial institutes is typically a very simple process. Pre-set templates make it quick and easy for the agent to type up the letter and even email it to the recipients you request in a PDF file.

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