Proof of Funds and Closing With a Texas Title Company

What proof of funds shows

Proof of funds helps a seller or contract holder evaluate whether a buyer appears able to complete the proposed purchase. For a cash buyer, it may be a recent bank or brokerage statement, a verified letter from a financial institution, or another credible document showing sufficient available funds. Requirements vary. The document should identify the holder and date while showing enough capacity for the transaction.

Protect sensitive information

Never send full account numbers, login credentials, tax identification numbers, or unrelated transaction history through a website message. Redact account numbers except a few identifying digits when appropriate. Share detailed documents only through a secure method requested by authorized staff or the closing company. A short portal note can state that proof is available and describe its general form without exposing sensitive data.

Hard-money and private financing

A hard-money buyer can prepare a current lender letter naming the borrower or entity, the general funding capacity, and meaningful conditions. Know whether the lender requires an appraisal, inspection, repair budget, entity documents, or borrower contribution. A letter is not the same as funded cash, so build lender timing into the offer. Private-money arrangements should also be documented and reviewed by qualified advisers.

Earnest money basics

Earnest money is generally a deposit delivered under a written agreement to the named escrow holder by the stated deadline. The amount, timing, refund rights, and consequences come from the contract—not from a listing page. Confirm wiring instructions independently using a trusted phone number because wire fraud is a serious risk. Do not rely on changed instructions received only by email. Keep delivery receipts and calendar every deadline.

Working with the title company

The title company can issue a title commitment, coordinate payoff and lien information, collect documents, prepare settlement figures, and facilitate signing and funding according to the transaction. Review exceptions, entity names, vesting, survey matters, taxes, and closing figures promptly. Ask your attorney what the title commitment and documents mean for you. A title company facilitates closing but does not replace your independent legal or tax advice.

Assignment and double closing

Some wholesale transactions close through an assignment of contractual rights; others may involve two separate closings. Costs, disclosures, funding, documents, and legal consequences differ. Do not assume one structure applies, and do not rely on a website summary to select it. Prepare early, browse current Houston deals, and create a free account to act when an appropriate property appears. General education only—not legal, tax, or financial advice. Texas closing details vary, so confirm your situation with your own title company and attorney.

Prepare a closing file before you need it

Create a secure transaction folder with entity documents, authorized signer information, lender contacts, proof-of-funds materials, and the names of your attorney and other advisers. Keep sensitive files out of ordinary text messages and portal notes. Confirm that the name on the offer matches the intended buyer or that any permitted assignment or entity change is handled in writing. Ask the closing company how it will deliver wiring instructions, then verify those instructions through a separately obtained phone number before sending funds. Review the title commitment and requests as soon as they arrive; waiting until the scheduled closing date can leave too little time to address an exception, lien, entity issue, survey matter, or lender condition. Request settlement figures early enough to compare them with your underwriting and funding plan. Bring questions to the appropriate professional rather than assuming a customary answer applies to every transaction. After closing, securely retain final signed documents and settlement records. Preparation cannot eliminate every delay, but it makes missing information visible early and helps the buyer, lender, attorney, and closing team work from the same accurate file.

Funding readiness includes more than producing one balance screenshot. Estimate the full cash requirement: purchase funds, lender contribution or down payment, earnest money, closing charges, prepaid items, immediate repairs, utilities, and a contingency reserve. Ask when each amount must be available and whether holds or transfer limits could delay delivery. If money will move from multiple accounts or entities, discuss that structure with the lender and closing team early. Confirm signer availability and entity authority before documents are prepared. Never wait for urgent wiring instructions to begin fraud precautions. Establish trusted contact information independently, require verbal verification, and pause when an instruction changes. A brief delay to verify is safer than sending irreversible funds based on a convincing but fraudulent message.