Why does that matter to the seller? They get that amount in cash anyways. I guess the risk if the mortgage falls through? But then they keep the earnest money.
Any offer that relies on a mortgage will have a clause indicating it is conditional on the mortgage coming through. A buyer would be insane not to do this unless they have the cash anyway. Even if it is a preapproved mortgage, there’s always a chance that something can go wrong.
Yeah, there’s no risk of the mortgage falling through, and not as much dealing with banks. I don’t really know the specifics but it was something I had to be aware of when buying my house. Luckily I was buying while it was a buyers market a few years ago, so prices were lower, fewer people were looking, and there weren’t any competing all-cash offers.
There is a risk of the mortgage falling though if there’s an issue with the inspection or survey, or if the buyer does something stupid like taking out loans before the sale is finalized.
In fact, I got my house because the previous buyer’s mortgage fell through. Mine almost fell through because it was only a 17 day closing and apparently it was survey season. Had to pay triple to get it expedited.
If you have the money it’s actually quite easy because there are lots of people happy to sell you a house on commission.
If you’re poor then go fuck yourself I guess?
Seems to be a common theme
It’s hard in nice/desirable areas because the rich people make all-cash offers, and sellers prefer that over people that will get a mortgage.
Why does that matter to the seller? They get that amount in cash anyways. I guess the risk if the mortgage falls through? But then they keep the earnest money.
Any offer that relies on a mortgage will have a clause indicating it is conditional on the mortgage coming through. A buyer would be insane not to do this unless they have the cash anyway. Even if it is a preapproved mortgage, there’s always a chance that something can go wrong.
But you have to put up your earnest cash within a few days.
But you don’t have to do that with a buyer paying with cash.
Plus the closing timeline is much longer for a mortgage vs cash
On top of that it takes 30 to 45 days to close. Where cash they close right away.
Why the rich landlords are buying up all the homes in the area. I got lucky to buy my home.
Yeah, there’s no risk of the mortgage falling through, and not as much dealing with banks. I don’t really know the specifics but it was something I had to be aware of when buying my house. Luckily I was buying while it was a buyers market a few years ago, so prices were lower, fewer people were looking, and there weren’t any competing all-cash offers.
There is a risk of the mortgage falling though if there’s an issue with the inspection or survey, or if the buyer does something stupid like taking out loans before the sale is finalized.
In fact, I got my house because the previous buyer’s mortgage fell through. Mine almost fell through because it was only a 17 day closing and apparently it was survey season. Had to pay triple to get it expedited.
We found it pretty easy… I guess I do live in one of the cheapest towns in the region though.