Lenders require it to verify you can cover closing costs.
Documentation from a 401(k) or IRA (if accessible). 🔑 Key Components of a POF Letter
Be prepared to explain the "trail" of the money to comply with Anti-Money Laundering (AML) laws.
Must be recent (usually within the last 30–90 days).
A formal letter showing an available, undrawn line of credit.
Stocks, bonds, or mutual funds (often valued at a haircut, e.g., 70-80%).
In commercial real estate, a is a document that verifies a borrower has enough liquid capital to cover the costs of an apartment loan. It assures lenders and sellers that you are a serious buyer with the "skin in the game" required to close the deal. 🏦 Purpose of a POF Credibility: Shows sellers you have the down payment ready.
Personal or business checking and savings accounts.