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Saturday, February 13, 2016

Does it matter if the buyer's offer is "cash" or getting a "mortgage?"

Cash talks, right?  

So does a mortgage - when it is done right!

There are times when cash is the only method to purchase a home.  Such is the case in many foreclosure and auction properties.  

Lenders (especially government mortgage loan guarantors like the FHA and VA) have standards that require a minimum standards be met (think health, safety).  Sometimes, as in the case of a property in poor condition, cash is the only available option.

In those cases where cash is not the only option, cash buyers need to remember cash does talk but it does not always talk louder than a better offer that has financing.
    Most cash offers will still have conditions like inspections and appraisals.  

    In the case of a low appraisal the cash buyer has the option of going forward anyway while the mortgage applicant  will likely have to dig for more cash.

    Of course the reality is, whether cash or mortgage buyer, who really wants to buy a property that is worth less than what is being paid?

    Still, sellers do get excited about a cash offer if it is reasonable (and does not contain excessive contingencies).

    Still, sellers should understand  a buyer who is obtaining a mortgage should not be considered less desirable than a cash buyer.   A mortgage does not mean the buyer does not have the means.

    Especially when the mortgage buyer has already been through underwriting.

    Not all mortgage pre-approvals are the same!

    I am aware of one lender who offers a mortgage product that has been though the underwriting process already and its just a matter of finding the right house...just like a cash buyer! Its called the "TBD Loan."

    I am not a mortgage lender.  But I know one who can tell you about his mortgage product that allows you to compete with the cash buyers.  Complete the form below and I will put you in touch immediately.  


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    There is nothing in this for me - except,hopefully, you will choose to let me help you buy your Melbourne, Florida home.

    Finally, a word of advice to sellers  - evaluate every offer as a whole, not just the offer price.

    Considering selling your Viera, Florida home?  Call me at 321-693-3850 or send me an email for your free market analysis. 

    Image courtesy of Vichaya Kiatying-Angsulee at

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