Proof of Funds Letter and Its Types to Know
Do you have a planning buying a new home and making your payment using the cash? Well, when you want to do this matter above, you need to learn more about the proof of funds letter. You need to know that for the big transaction, such as buying a new house, you will be asked to show the evidence that you have enough fund to do the cash payment.
Actually, this letter itself will be made by the bank. However, knowing about it is a must in order to ease you in the further transaction. Then, what is the letter tell about? Basically, it is a legal document, which will be very useful in order to give proof that you have enough funds in order to make a cash payment for the big transaction, as its example above.
Of course, there are free proof of funds letter templates, which you could get by online. However, in this occasion, we will learn about the types of it and any other matter, which you need to know.
Types of Proof of Funds Letter
To know about the detail of the letter, you also need to see the types of it. Actually, this letter is given by a person who are making a request from a bank to release the detail of his or her proof of funds. In common, the letter is used to buy a house or other big transaction. The letter is important for the transaction because it could be used to gain belief of the sellers to make transaction with you.
There are some types of proof of funds letter, which you need to know. Knowing some types of it are important because every type of it has its own function. The kinds of the letters, are:
- Bank comfort letter
The first kind of the letter is the bank comfort letter. This letter could be referred with the different matter depending on the purpose of financial. The bank comfort letter is also called as the document that is created and it is sent to the buyer. The document is used as the buyer is capable to make any payment in its transaction.
- Bank readiness letter
The second kind of the letter is the bank readiness. It is the very common kind of the letter and it is usually used for the international trading. Here, when the international trading, such as import and export are involved, there will be asking from the buyer or seller about the bank letter of the readiness. This document could be handled bank by bank. The purpose is to give confirmation that the agent could make a good transaction in process.
- Blocked fund letter
This type of the letter is the most common letter to use, especially as the proof that an account has been blocked from the specific transactions. This letter shows that someone cannot do the transaction, especially for the big transaction in specific time. When the letter is serving, it means that some funds cannot be used and it should stay in the bank.
That is all about the proof of funds letter. Look for the more information and examples by the online feeds. Hopefully it will be useful for you all.
proof of funds letter is an important letter in the transaction needs. By this letter, someone could get the evidence that they have enough funds to make big transaction.