Cash is king, right??
But there is more than one “kind” of cash. Earlier this year, several mortgage companies began allowing their clients to write cash offers, which has propelled many buyers to the top of the offers received pile.
Here’s how it works:
👉 The mortgage company vets the clients to determine if they qualify for the cash program. This includes looking at their debt-to-income ratio, down payment, salaries, etc.
👉 If the buyers qualify, the mortgage company will supply a letter to submit with the offer indicating the offer is a cash offer.
👉 There is often fee for this cash offer service, some mortgage companies refund the fee at closing. All companies differ on this.
👉 The buyers reserve the right to secure a mortgage, which they usually do, but the letter secured that the offer is cash in the event the mortgage doesn’t go through. In which case the mortgage company provides the cash to close and they buyers secure a mortgage with the mortgage company after the closing.
In this crazy, low inventory market, it provides some buyers with an additional tool.
Sound intriguing? Let me know and I can put you in touch with a mortgage company offering this service.