If you’re a cash buyer, congratulations! You don’t have to deal with banks or mortgage companies and their endless paperwork. You can simply make an offer on a home and then close as soon as possible (or negotiate for more time). To help you navigate these waters, here’s what you need to know about buying real estate with cash.Verify your mortgage eligibility (Aug 19th, 2022)
Purchasing a home without a loan
You may not need a loan.
If you plan on purchasing a property for cash, chances are high that you won’t need a loan. Most lenders will require an appraisal and financing contingency in order to secure your mortgage. But what if you don’t want to wait for an appraisal? What if you don’t want to put the sale of the property at risk by requiring financing contingencies? In that case, it’s time to consider buying without a mortgage!Verify your mortgage eligibility (Aug 19th, 2022)
The advantages of paying cash aren’t limited just to avoiding these contingencies—you can also avoid paying closing costs up front.
If you don’t need financing, you can move fast. If you have cash in hand and know exactly how much money will be available for your home purchase, there’s no need to wait for loan approval. You can close as soon as your seller is ready to go. No appraisal needed either—if the seller agrees that the property is worth what he or she is asking for (which most will), then it won’t take long at all before title transfers from one person’s name to another.
Closing as fast as you want to close
One of the great things about our cash buyer program is that you can close on a property as soon as you are ready to close, even if there is no loan in place. With most loans, once an application has been submitted it takes anywhere from 5-12 weeks before you receive the final approval from your lender. However, with us you don’t have to wait for a loan to be approved before closing on your home purchase. We do everything in-house and can close as soon as we receive full payment in cash (or check).Verify your mortgage eligibility (Aug 19th, 2022)
No financing contingency- property can be in whatever condition
You may be wondering if the property can be in any condition. The answer is: yes!
- The property can be a fixer-upper.
- The property can be a short sale.
- The property can be a foreclosure or bank-owned property, or land contract (contract for deed).
- Or it could even be a probate sale, where the seller died and there’s no will to go through probate court with—so you don’t need to worry about that process taking too long and holding up your closing date!
No appraisal needed if the seller will accept it
If you’re selling your home to a cash buyer, there’s no need to wait for an appraiser to come out and value your home. There’s also no need to wait for the appraisal to be completed and approved by the lender. A cash buyer doesn’t have this type of requirement—they are only concerned with how much money they will receive from you for purchasing your home.
A cash buyer is a flexible buyer.
A cash buyer is a flexible buyer. They don’t need an appraisal, and can close as fast as they want to. If you’re in need of a quick sale and don’t want to go through the hassle (and wait) of selling with a traditional lender, then selling your house to a cash buyer may be one of your best options.Verify your mortgage eligibility (Aug 19th, 2022)
Cash buyers can buy properties in any condition, whether it needs fixing up or is ready for occupancy immediately. You won’t need to put your home on the market waiting for approval from a traditional loan provider or appraiser before putting it on the market just because you’ve decided to sell now instead of later!
And one more benefit: because there’s no financing contingency involved—meaning that if they’re able to get funding at all—they can close without having approval from their bank; which means less waiting around while they try to look into getting approved for funding themselves instead!
Our Power Buyer program
To get started, you’re going to first fill out our pre qualification certificate quiz, and find out instantly what you might qualify for in the description, then book a discovery call with me to figure out your specific next steps. Typically, it’s the loan application. And what our team does is secures the max cash buyer letter for you, and you sign the power buyer contract. Once you find a property and your offers accepted, you’re going to deposit 3% of the purchase price into an escrow account, then our team begins processing your mortgage loan during the time that you’re under contract. So you can get a standardized mortgage loan, and then upon the closing of the home 2% of your 3% deposit is refunded back to you.Verify your mortgage eligibility (Aug 19th, 2022)
So if we were buying this home at $200,000 and we put down $6,000 in earnest money to show our good faith, we would be able to close on this home with no money out of pocket at all up front. That’s how easy it is!
What does the power buyer program cost?
The feet of the power buyer program is between one and 3% of the purchase price. So if you’re buying a $100,000 home, it’s going to be between $1,000 and $3,000. And then for your closing costs and other fees, there’s a minimum fee of $750 paid at closing. And then you can choose to pay more than that if you want. But that’s just so we can get the money from your lender on time so that we can close on time.Verify your mortgage eligibility (Aug 19th, 2022)
What are the requirements?
You need to have a minimum FICO score of 660 or higher, you have to have a maximum debt ratio below 45%, minimum of 5% down for the loan to value on the loan. And for primary residences, only single family Townhouses and condos. It’s going to be the conventional limits, the high balance loan limits per your county. And then if you’re a well qualified borrower, we can evaluate some things outside of those general guidelines on a case by case basis.
When the borrowers make an offer through the program they deposit 3% within 72 hours of executing the purchase offer what if a property fails inspection in the event the property fails inspections, the purchase may be canceled by power buyers team in the event that happens the borrower will get a full 3% refund in the earnest money deposit returned. If this occurs after 72 hours but before closing, we will send you a check for 100% of your money back. We understand that there can be challenges with buying a home and we want to make sure that our borrowers are protected. If you are not happy with your purchase at any time during the process, we will refund your money.Verify your mortgage eligibility (Aug 19th, 2022)
The max power buyer offer is determined by the borrower’s financial profile. The power buyers team will review the market value of the home they’re putting an offer on and will back the financing of the lower amount of either the determined fair market value of the property or the max offer they are eligible for.
If a borrower can secure financing then the rent is determined as the fair market value plus estimated cost and is agreed upon upfront before the purchase contract is signed. So there are no surprises.
Does a borrower have to rent the property if they cannot secure financing? No they do not. However, if they don’t close on the house, they will lose their 3% deposit and the power buyers team will put the house back on the market for sale.Verify your mortgage eligibility (Aug 19th, 2022)
How is your 3% deposit applied? Your 3% deposit goes toward closing costs and down payment assistance program fees which means you don’t need any money up front to close on your home!
A cash buyer is a flexible buyer. They can close as fast as you want to close, and they don’t need a loan. They are also willing to work with whatever condition the property is in, so you don’t have to worry about renovating or selling before closing if that’s what you want!
My team and I get calls from folks just like you each and every single day trying to get a mortgage. Fill out that 62nd pre qual certificate, get your certificate and figure out how much you potentially could qualify for. So if you have any questions, shoot us a call, text or an email. We’ve got your back when getting a mortgage and building wealth.Show me today's rates (Aug 19th, 2022)