Buying with cash

**Dlynn** · 09-19-2010, 02:35 PM

My real estate agent showed me a house and then said she was only supposed to show the house to buyers who were pre-approved for a mortgage. I told her we didn't need a mortgage because we would be paying cash. She said I still had to get bank approval. Why would I have to go to the bank if I'm paying cash?

**Greg** · 09-20-2010, 06:07 AM

If you are paying cash then you won't need to get pre-qualified but you will need to provide proof of funds from your money holder that shows you have the money.

**gotlivechat** · 09-20-2010, 06:16 AM

Does buying with cash give the buyer any added 'edge' when multiple offers are on the table (even if the bid is a little lower than the others)?

**EricRE** · 09-20-2010, 07:12 AM

You definitely would not need to get pre-qualified because that is merely stating that you would be qualifying for a loan...which you are not getting. You would have to provide proof of funds, however, so that your agent knows that you are actually able to make a purchase with all cash.

Yes, an offer with all cash is better than one that needs to get a loan...you have the ability to close escrow very fast (my personal fastest is 5 days, however usually approx 2 weeks). Have seen many offers that are all cash with a lower asking price be accepted over those needing loans.

**smcnowland** · 09-20-2010, 01:21 PM

You agent doesn't sound like she knows what she's talking about. All that matters is what you are an ABLE buyer. That is the point of the pre-approval requirement. As anyone in the business knows,ANY mortgage transaction can fall apart ANYTIME. Cash, on the other hand, is king. I'd work with an agent who understands this.

**Bones** · 09-21-2010, 05:07 AM

Cash holds a ton of weight with a foreclosure in a multiple offer situation because the banks understand that without a financing contingency they're more likely to get paid.