There seems to be a fair amount of confusion when it considering selling a home, especially when you're in a position where you need to sell a home FAST! Which generally translates into CASH. But why? Why is it so important for a person to use a cash buyer for a quick sale of their home, as opposed to a regular mortgage or other financing means? We'd like to shed some light on how each type of financing works and why.
In traditional financing, a bank (mortgagor) will lend the money to the buyer (mortgagee). Generally a bank will finance a portion of the whole cost of the property. The amount that the bank will lend on the property depends on a few things such as; the location and physical characteristics of the property, the current market conditions, and the buyer's credit history. The bank is in turn, a "first position" lien holder on the property for the amount they have lent to the buyer. In other words, that buyer can never sell that property until that lien (mortgage) is satisfied in full. One of the major reasons for financial crisis in the Unites States in the late 2010's was banks over-lending on undervalued properties. When the market crashed there were billions of dollars needed to cover the mortgages on properties that were worth half of what they were just years earlier. This crash, was one of the worst in history, and became known as "The Great Recession". It caused banks to become far stricter in approving mortgages and interest rates to drop dramatically. Things are back on the right track now, but it is still very difficult to get a mortgage (yet another reason to use a cash home buyer like Fast Eddie!)
In order for a loan to get approved a buyer must communicate with the bank their intentions to purchase the property. They will be first required to supply them with all of their personal financial information in order to get a look at them as a credit risk, This process usually takes a week or two. If approved, the bank will then have the property completely inspected for any flaws, and appraised. This process can take a few weeks or even months to complete. Anything not satisfactory to the home inspection guidelines, will have to be fixed at the home owners expense. This almost always runs the homeowner tens of thousands of dollars in costly repairs. It also requires them to have to live along side, (and wake up to) the sights and sounds of contractors and their equipment all day long until all work in complete! A seller's disclosure form will also be required of the seller which can get them in serious legal trouble is all flaws were not disclosed properly, After the property is up to par with the home inspections the documents will be finalized and a settlement can eventually be scheduled.
Simply put, if you'd like to sell a house fast, and/or sell a house that needs work, or any circumstance where you don't have months of time, and boatloads of patience, you're better off using a cash buyer, like Fast Eddie Home Buyers. A cash home buyer like us, does not need ANY of the items listed above needed for a traditional loan. We accept the property "As Is" with all its current faults. The cash is immediately available, and all that is required is a simple title search, generally a 2-3 day turnaround.
It is our hope that we've made cash buyers the best choice for those of you who need to sell a house this century! Please call us, or visit our Get An Offer page to get a fast offer on your property. And don't forget we pay for referrals! if you know someone who needs to sell a house fast for cash, send them our way and you may be the recipient of our $1,000 referral fee arrangement!