EDU Mortgage EDU

calisteph6

Well-Known Member
May 5, 2005
16,759
KRAPROOM
I heard somewhere about being able to be seen as an all cash offer but still getting a mortgage. I don’t really understand how it works. Does it just mean you have enough assets to buy the house outright if the mortgage falls through or what?
 

Relax Preppy

OT Supporter
May 22, 2003
71,127
Washington, D.C.
I heard somewhere about being able to be seen as an all cash offer but still getting a mortgage. I don’t really understand how it works. Does it just mean you have enough assets to buy the house outright if the mortgage falls through or what?
In virginia at least you can write a cash offer, but then switch the contract to financing and apparently the seller has no recourse. You could also waive the financing contingency which would be the same but give the buyer recourse - but in the end you could still back out if financing fell through and just lose your EMD.
 
  • Like
Reactions: stevezissou

kwhitelaw

OT Supporter
Sep 1, 2004
38,896
virginia
In virginia at least you can write a cash offer, but then switch the contract to financing and apparently the seller has no recourse. You could also waive the financing contingency which would be the same but give the buyer recourse - but in the end you could still back out if financing fell through and just lose your EMD.
Ummm not so sure about that. Maybe the contracts you're writing down there don't have language protecting a seller from a buyer doing that (or saying they're conventional financing at first then switching to FHA) but up here we do. Seller has to agree to the change or contract can be voided by seller
 

Weapon X

Well-Known Member
Sep 5, 2001
9,221
I heard somewhere about being able to be seen as an all cash offer but still getting a mortgage. I don’t really understand how it works. Does it just mean you have enough assets to buy the house outright if the mortgage falls through or what?
There's companies out there that will buy it for you with cash and then you get a mortgage to buy it from them
 

stevezissou

OT Supporter
Jul 15, 2009
39,376
US
I heard somewhere about being able to be seen as an all cash offer but still getting a mortgage. I don’t really understand how it works. Does it just mean you have enough assets to buy the house outright if the mortgage falls through or what?
In virginia at least you can write a cash offer, but then switch the contract to financing and apparently the seller has no recourse. You could also waive the financing contingency which would be the same but give the buyer recourse - but in the end you could still back out if financing fell through and just lose your EMD.

Ummm not so sure about that. Maybe the contracts you're writing down there don't have language protecting a seller from a buyer doing that (or saying they're conventional financing at first then switching to FHA) but up here we do. Seller has to agree to the change or contract can be voided by seller
This is what I did in 2015, wrote a cash offer then converted to financing before closing, but provided seller proof I had funds to close if financing didn't come through.

Every state and local laws are different though, not attorney, not legal advice.
 
Last edited:
  • Like
Reactions: kwhitelaw
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
Ummm not so sure about that. Maybe the contracts you're writing down there don't have language protecting a seller from a buyer doing that (or saying they're conventional financing at first then switching to FHA) but up here we do. Seller has to agree to the change or contract can be voided by seller
If someone had cash to buy it outright, but buyer decided to try and borrow money, at what point could the seller void it? Just because they apply for a loan, doesn't mean they intend on getting it, or it doesn't obligate them to close on the loan. The change the seller would have to agree to could literally be at the very end right before closing. Would seller void it at that time? Probably not, right?
 

stevezissou

OT Supporter
Jul 15, 2009
39,376
US
If someone had cash to buy it outright, but buyer decided to try and borrow money, at what point could the seller void it? Just because they apply for a loan, doesn't mean they intend on getting it, or it doesn't obligate them to close on the loan. The change the seller would have to agree to could literally be at the very end right before closing. Would seller void it at that time? Probably not, right?
Depends on what the contract says, just like if the contract says "not assignable without express written permission of seller" but buyer chooses to assign contract for the agreed upon price before closing.

All the agents would scramble at that point lololololol
 
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
Depends on what the contract says, just like if the contract says "not assignable without express written permission of seller" but buyer chooses to assign contract for the agreed upon price before closing.

All the agents would scramble at that point lololololol
I guess technically it wouldn't "change" until right at closing when the buyer would be signing his closing loan docs. Any point up until then, buyer could say "I haven't changed anything yet, here's my cash I'm going to use to buy it." So ultimately it could be a last minute "if you want to close now, please sign this form saying it's OK for me to get a loan, and then you will get your million dollars." Can you imagine what the agents would do if their million dollar deal fell through because a seller wouldn't agree to sign? They would be scrambling to put a stop payment on their BMW lease checks because they were counting on the commissions to be deposited before the check is posted :noes:
 
  • Haha
Reactions: stevezissou

stevezissou

OT Supporter
Jul 15, 2009
39,376
US
I guess technically it wouldn't "change" until right at closing when the buyer would be signing his closing loan docs. Any point up until then, buyer could say "I haven't changed anything yet, here's my cash I'm going to use to buy it." So ultimately it could be a last minute "if you want to close now, please sign this form saying it's OK for me to get a loan, and then you will get your million dollars." Can you imagine what the agents would do if their million dollar deal fell through because a seller wouldn't agree to sign? They would be scrambling to put a stop payment on their BMW lease checks because they were counting on the commissions to be deposited before the check is posted :noes:
Exactly,

My real estate prof was telling us how you didn't have to disclose who you were representing early on in negotiations but before you closed the transaction you did have to disclose.

He was telling us how he was representing the buyer(Bank A) in a transaction who was trying to buy a piece of property for sale but seller was (Bank B).
He did the negotiations and right before closing they disclosed who the buyer was and the seller was NOT HAPPY to be selling to a competing bank in town but the deal did close.
 

pookrat

OT Supporter
Dec 6, 2002
4,610
The Woodlands
2yr snapshot of actual locked rates for 30 & 15yr fixed.

This is just *average, so it includes people who locked with a 640 credit score and people with 820 scores. And this snapshot doesn't get into down-payments (although there is a button to look at below and above 80% LTV).

View attachment 208127
Damn it looks looks like I locked in my refi at just the right time and got a darn good rate. I had to bump the rate up a tad since I wanted more cash out than I initially asked for. I think I posted about it in this thread. I wanted to pay off ALL of our debts and had racked up quite a bit of Credit Card Debt. I asked about the refi and was approved for 2.95% on a 30YR Conventional. When I asked for $30,000 Cash Out the rate went to 3.25%. That was in Early to Mid November 2021 so from the looks of that chart I didn't do too bad!!!
 
  • Like
Reactions: atxmike
TS
TS
saabguy

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
22,467
Loserville. Population: 1
what are you, a youtuber?
no.


o2Q2vX.gif
 
  • Like
Reactions: stevezissou

kwhitelaw

OT Supporter
Sep 1, 2004
38,896
virginia
If someone had cash to buy it outright, but buyer decided to try and borrow money, at what point could the seller void it? Just because they apply for a loan, doesn't mean they intend on getting it, or it doesn't obligate them to close on the loan. The change the seller would have to agree to could literally be at the very end right before closing. Would seller void it at that time? Probably not, right?
I'd have to look at the language

But yeah not likely the seller would void at the end I agree

I could see it being an issue tho if you write conv then flip to VA (cause you had no shot of getting a VA loan accepted) and then the seller has to go along with (mildly) tougher financing guidelines
 

Menger

OT Supporter
Nov 23, 2011
24,162
Damn it looks looks like I locked in my refi at just the right time and got a darn good rate. I had to bump the rate up a tad since I wanted more cash out than I initially asked for. I think I posted about it in this thread. I wanted to pay off ALL of our debts and had racked up quite a bit of Credit Card Debt. I asked about the refi and was approved for 2.95% on a 30YR Conventional. When I asked for $30,000 Cash Out the rate went to 3.25%. That was in Early to Mid November 2021 so from the looks of that chart I didn't do too bad!!!
:hs:

just depends on how much you are borrowing, and for how long ... let's say it was 400k @ 2.95 vs 430k @ 3.25 ... you're paying an additional 40 grand in interest over 30 years, plus the 30 additional grand in principal ... so that 30 grand today would have cost you 70 grand in mortgage payments
 

Menger

OT Supporter
Nov 23, 2011
24,162
I just found something kind of cool that I didn't know existed...our pricing engine we use to price & lock rates is a platform that thousands of companies use. It aggregates all the available rates & programs that a particular lender provides and then you run your scenario through the engine, it spits out what the available rate/lock terms are, and we select the rate & lock it.

Going to places like bankrate or wherever to see what rates are doing is tricky because it's more of a marketing & lead generating tool. They post rates that usually aren't accurate, but there is usually some kind of "get info" option where you input your info, then they sell it to a dozen places who will solicit you, and may not even be able to offer you the deal you were inquiring about. For example, if you see a FB paid ad, an email, or a postcard mailer that advertises 2.25%...it's designed to get calls, but you will never get what they advertise because it's all BS.

I didn't know this until recently, but the pricing engine we use actually collects data for what rates are actually being locked from the tens (hundreds?) of thousands of users every day. The compile that info and give averages and can filter it depending on loan program, term, LTV, etc. So if anyone wants to see averages of what's really out there, just post here and I can show real data

View attachment 208123
do you have a comparison of FICO > 740 for a traditional house vs condo? (I have no idea just assume condo rates are a bit higher)
 

Users who are viewing this thread

About Us

  • Please do not post anything that violates any Local, State, Federal or International Laws. Your privacy is protected. You have the right to be forgotten. Site funded by advertising, link monetization and member support.
OT v15.11.1 Copyright © 2000-2022 Offtopic.com
Served by fx.offtopic.com

Online statistics

Members online
398
Guests online
100
Total visitors
498

Forum statistics

Threads
75,928
Messages
7,381,914
Members
87,002
Latest member
mohamedali2022