Why Do We Ask for Proof of Funds?

If you're thinking about making an offer on a property, you might be wondering why your estate agent suddenly wants to see your bank statement, a mortgage agreement in principle, or a note from your broker. It might feel a little bit… intrusive. But don't worry – there's a good reason we ask for proof of funds, and no, it’s not because we’re trying to be nosey!

WHO needs to provide proof of funds?

Simply put: anyone who wishes to make an offer on a property. Whether you're a first-time buyer with a mortgage in principle or a cash buyer with savings ready to go, we’ll need to see that you're in a financial position to proceed.

WHAT counts as proof?

We’re not looking for your entire life history – just a snapshot to confirm your affordability. Acceptable proof of funds can include:

• A Mortgage Agreement in Principle from your lender

• A recent bank statement showing available funds

• An email or letter from your financial advisor or mortgage broker confirming your position

WHEN will we ask?

When you book a viewing with us, we’ll ask about your buying position – are you selling a property, are you a first-time buyer, are you chain-free? This helps us understand your situation and guide you properly.But we’ll only ask for proof of funds at the point you make an offer. At that stage, it’s essential we have everything in place to present your offer to the seller.

WHY do we ask?

This one’s really important: Our clients are the people selling their homes through us – not you, the buyer. It’s our job to act in their best interests, and that includes verifying that any offer we pass on is from someone who can genuinely proceed.

It’s also part of our obligation under the Estate Agent Code of Practice, as well as anti-money laundering regulations. By confirming your affordability, we’re doing our due diligence and keeping the process fair, transparent, and legal for everyone involved.

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A Note from Abby & Michaela ♡

We totally get it – we really do. We know it can feel a bit awkward when we ask for proof of funds. Sometimes people get a little defensive or even annoyed, thinking we’re being over the top. But we promise we’re not doing it to be difficult or nosey!

As estate agents, we have a responsibility to protect our sellers, follow the law, and ensure every sale has the best chance of succeeding. We’re simply following best practice and staying compliant with money laundering regulations. It’s not glamorous, but it is essential.

So when we ask you to send something over, please know – we’re just doing our job, and trying to keep things smooth and stress-free for everyone.

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What happens if we don’t check?

Imagine this: We receive an offer from someone claiming to be a cash buyer. They're super keen, want to move quickly, and we excitedly tell the seller they’ve got a fantastic offer on the table. The seller takes their house off the market, starts packing boxes, even turns down other viewings.

Then, two weeks later… the “cash buyer” admits they don’t actually have the cash – they were hoping to get a loan from their Uncle Phil in Portugal, who’s suddenly gone off-grid. Cue awkward phone calls, frustrated sellers, wasted time, and a lot of unnecessary stress for everyone. 😬 That’s exactly why we check first.

We hope this blog has helped explain things a little better. We always aim to be clear, upfront, and respectful – and we’re here to guide both sellers and buyers through the process with care and honesty.

Any questions? Just give us a call – we’re happy to chat things through.

Abby & Michaela

Directors

Heart & Home

Property Professionals