when an individual or entity is making a large purchase such as buying a home the seller usually requires proof of funds this ensures not only that the buyer has the money available to make the purchase but also has legal access to the funds as the proof of funds comes from a verified authority such as a bank particularly for the purchase of a home the seller and or mortgage company wants to see if you have enough money for the down payment and the closing costs 
it s important to note that in the majority of instances the proof of funds must refer to liquid capital primarily cash certain investments such as retirement accounts mutual fund accounts and life insurance do not qualify as proof of funds requirements of a proof of funds documents