Mortgage Blog

For the general public, a lot of people will think
cash-offer might get you lots of advantage over offers
with loans when puchasing of investment or primary house.
But the recent experience with the bank owned properties
may suggest the other way.

I am doing a purchase loan for one of my clients.The
offer price was 390k, and the appraisal value was 355k.
And after negotiation with the bank, the bank(seller)
agreed to lower the price to 355k. If they presented
the cash offer at the beginning, they might not have
this advantage. Buyers saved around 9% from the original
purchase price. And if you read my previous blogs,
for all those transactions with appraisal value lower
than the purchase price, the sellers(banks) all agreed
to lower the price to the appraisal value.

Also, for those who used cash to purchase properties
at the beginning, they found it's almost impossible to
get the cash-out(from cash-out refinance) after they had
4 financed properties.

So cash-offer might noe be the best option on the current
market, unless it will help you to get the deal.