How to verify the authenticity of proof of funds documents while selling a home?

When selling a home, verifying the authenticity of proof of funds (POF) documents is crucial to ensure the buyer has the financial capability to complete the transaction. Here are some key steps to follow at

Check the Source and Type of POF Document:

The most common types of POF documents include bank statements, letters from financial institutions, and brokerage statements. Verify that the document comes from a reputable financial institution that can be contacted for further confirmation at

Verify Contact Information:

Ensure that the contact information for the financial institution on the document matches the publicly available contact information for that institution. This includes phone numbers, addresses, and websites.

Check for Authenticity Features:

For bank statements and letters, look for features that indicate authenticity, such as watermarks, logos, and seals. These are usually difficult to replicate.

Verify Funds Availability:

Call the financial institution to confirm the availability of funds. Use the phone number from the institution’s official website or directory, not from the document itself, to ensure you are speaking to a legitimate representative.

Cross-Check Statements with Online Banking:

If the buyer provides a bank statement, ask if you can view the statement on their online banking portal during a video call. This can help confirm that the statement is genuine.

Be Wary of Altered Documents:

Look for any signs that the document has been altered or doctored. This can include mismatched fonts, unusual formatting, or visible edits.

Consider Using a Professional Escrow Service:

Utilize an escrow service for the transaction. Escrow companies often verify POF documents as part of their services.

Consult with Your Real Estate Agent or Attorney:

Seek advice from a real estate agent or attorney experienced in property transactions. They can provide guidance and support in verifying POF documents.

Trust Your Instincts:

If something doesn’t seem right, investigate further, or ask for additional proof. It’s better to delay the transaction than to risk dealing with an unqualified buyer.

Document Everything:

Keep detailed records of all communications and verifications regarding POF documents. This can be crucial if any issues arise later in the transaction.

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