POF stands for PROOF OF FUNDS.
POF demonstrates to the seller that you DO have the necessary funds to purchase the property. This is particularly important if you are a CASH BUYER.
While our California contract allows for a period of time after acceptance to provide POF, I always advise doing so up front – it makes your offer more competitive in the case of a loan, especially if you are in a competitive bid situation and you are putting down substantial cash as part of your offer.
And if you are a CASH BUYER, I ALWAYS advise providing a POF up front, even with normal sales.
So what constitutes a POF?
If could be a copy of your most recent bank statement(s) or a letter from your banker stating that you have the necessary funds to purchase the property in question. A POF should always be recent – one that is 6 months old won’t cut it, and in the case of foreclosures and short sales it MUST be 30 days old or less. The more recent the better, in all cases.