Here is my West Bloomfield home buyer tip – cash is king. So many buyers are wondering why they lose out on houses. So let me explain why a person that is buying a house with a mortgage will lose out to somebody is buying with cash. There are three reasons why a West Bloomfield seller will pick cash over a mortgage buyer.
1.) Mortgages take up to 6 weeks to close. A cash buyer can close in as soon as 2 weeks. I have had buyers lose their job, not get transfered, get divorced, spend too much money in the space of 6 weeks where it kills the deal. Quick is good.
2.) A mortgage buyer has to have an appraisal for the bank to approve the loan. The appraisal could come in at a lower price. The seller would have to lower the price, the buyer would have to come up with cash, or the deal would not go through. Usually the buyer does not have extra cash. I have seen houses appraise $30,000 lower. The deal dies or the seller lowers the price. Sellers do not want to lower the price. In a cash deal there are no appraisals. The seller never has the chance to have to lower the price.
3.) A mortgage buyer has to go through the banks underwriting process. You would be surprised at how many times a home deal blows up because of the mortgage. There is just no way that any loan officer can ask all the questions a underwriter does when they scrutinize the buyers finances, and job history. Things come up in a mortgage deal that the buyer can’t control. In a cash deal we take all those uncertainties and the underwriter out of the equation. We verify funds and we close the deal. Done.
Those three reasons are why cash is king for a West Bloomfield home buyer. So if you are a West Bloomfield home buyer and have been losing houses, but have the ability to pay cash. Buy it cash. You will win!
If you are looking to buy a West Bloomfield home or any home in the metro Detroit area give me a call on my cell (248) 310-6239