HomeLight

AUGUST 31, 2021

From the seller’s point of view, it doesn’t make much difference whether the cash comes from the buyer’s personal bank account or from a mortgage loan. The associated contingencies , which come with additional risks for the seller, are where you’ll find most key distinctions between a cash offer and an offer backed by a mortgage loan.

Due diligence

Redfin

FEBRUARY 10, 2021

Well, it’s not only the difference between getting a low-interest rate on a home loan versus a high one, but it will also directly impact how much a bank or lender will loan you. Banks like to see a healthy savings account and other investments or assets (i.e. Banks like to see a borrower with the same employer for about two years.

Debt-to-income ratio

Redfin

AUGUST 29, 2024

Debt-to-income ratio (DTI) Another major factor that a lender will consider when approving your mortgage loan is your debt-to-income ratio (DTI). Get pre-approved As you’re researching how to buy a house, you will want to get a mortgage pre-approval. The number is then multiplied by 100 to get the final percentage.

Earnest money deposit

HomeLight

SEPTEMBER 25, 2020

Getting a mortgage also allows you to keep more of your liquidity intact : If you had $500,000 in the bank, and use it on an all-cash home purchase, you now have $0 in the bank. Here’s how the fee-based service works: HomeLight goes over your financial details and pre-approves you for your loan amount.

Mortgages

Realty Biz

DECEMBER 23, 2022

Last December, 19% of homebuyers waived the home inspection contingency component of their real estate sales contract. Even though most realtors don't recommend not ordering a home inspection, in a tight market, waiving the contingency may improve a buyer's chances of a seller accepting their offer.

Inspection

Redfin

OCTOBER 12, 2020

From navigating the mortgage approval process to the possibility of a bidding war, it can be tricky to go at it alone. This way you can get pre-approved to show sellers that you’re a qualified and serious buyer, and you’ll know exactly how much you can afford. Home appraiser.

Title

HomeLight

MARCH 30, 2021

Preapproval, on the other hand, is typically a more official process where the lender requires more documentation of your bank accounts and also looks into your credit history. Pre-approval letters are usually good for 60 to 90 days, so don’t enter this stage until you’re serious about your home search.

Due diligence

HomeLight

NOVEMBER 9, 2021

A buyer using a mortgage will most likely include the following contingencies (all of which have deadlines): Inspection contingency (note: this one is optional and buyers can choose to waive it). Appraisal contingency. Home sale contingency. Mortgage contingency. Getting a pre-inspection.

Purchase and sale agreement

HomeLight

JULY 31, 2022

But when you place your home on the market, it’s hard to predict if your top offer will come from a cash buyer or a buyer pre-qualified for a home loan. A conventional loan is a private mortgage, which is usually backed by a commercial enterprise such as a bank, mortgage company, or credit union.

Closing

HomeLight

SEPTEMBER 15, 2021

Pre-listing inspection report. Contingency removal form (CA-specific). Home inspection report. If a buyer’s mortgage lender requires a copy of the homeowners insurance, you’ll need to provide it for the loan to be approved. Give buyers time to conduct a lead inspection. Pre-listing inspection report.

Purchase and sale agreement

Dwell Real Estate

JULY 10, 2020

The financing contingency guarantees that you’ll get a refund for your earnest money if for some reason your mortgage doesn’t go through and you’re unable to purchase the house. Most experts recommend that you not waive the inspection contingency, unless you’re planning on tearing the property down.

Earnest money deposit

Dwell Real Estate

JULY 10, 2020

The financing contingency guarantees that you’ll get a refund for your earnest money if for some reason your mortgage doesn’t go through and you’re unable to purchase the house. Most experts recommend that you not waive the inspection contingency, unless you’re planning on tearing the property down.

Earnest money deposit

Marco Santarelli

AUGUST 2, 2020

Let us continue to explore the housing market trends — from pre-COVID-19 days until July. About 1 percent of Redfin customers waived either a financing or inspection contingency last month. Under potential listings, there are about 12 Foreclosed and 2816 Pre-Foreclosure homes. Additionally, there are 673 homes for rent.

Marketing

HomeLight

OCTOBER 8, 2020

So, it has allowed my sellers/buyers to get approved, and then go out and find the home that they’re in love with and be able to write a very strong offer, not contingent on the sale of their house, and win. ” And fortunately, I had just been approved to be a Trade-In agent with HomeLight.

Agents

HomeLight

MARCH 16, 2023

There are just not enough buyers who have a good credit rating and can get bank underwriting,” he says. More certainty: With a pre-offer walk-through, a cash home buyer can typically provide a firm cash offer that comes with few contingencies, or no contingencies at all. But that’s no longer the case.

Sales

HomeLight

OCTOBER 29, 2021

Once you buy a house and see your now-depleted bank account, that’s shocking,” she says. “I Your lender wants to see that you aren’t wiping yourself out financially to buy a house, and they usually require about two months’ worth of mortgage payments in your bank account as a financial cushion. But still get a home inspection!

Inspection

HomeLight

MARCH 13, 2023

More certainty: With a pre-offer walk-through, a cash home buyer can generally provide a firm cash offer that comes with few contingencies, or no contingencies at all. You don’t need the added stress of waiting for the buyer’s mortgage approval or a home inspection turning up any unpleasant surprises.

Sales

Realtor.com

JANUARY 4, 2023

Inventory levels are still low, but there are more homes coming on the market; the bidding wars and mind-boggling offers over the asking price have died down; and buyers can once again insist on inspections, contingencies, and repairs before the deal closes. And that’s not an easy process.

Inspection contingency

HomeLight

JUNE 29, 2021

Your sale is more likely to close and close faster with a cash offer than with an offer that hinges on a mortgage approval. Home inspection contingency. Home inspection contingencies may lead to further price negotiations , depending on what issues turn up. Source: ( Thom Bradley / Burst ).

Inspection contingency

HomeLight

OCTOBER 29, 2020

Contingencies can range from the relatively minor or otherwise workable — like requesting a $3,000 allowance to fix a plumbing issue that was revealed during inspection — to more serious stipulations, such as a buyer needing to sell their existing house before closing on the next. Negotiable contingencies. Home inspections.

Purchase and sale agreement

HomeLight

MARCH 23, 2022

If they have underwriting approval, versus just a preapproval, they’re a much stronger buyer than someone with just a preapproval letter. Once you’re preapproved, your offer on a home is more likely to be accepted because you’ve made it further in the mortgage approval process. Only include essential contingencies.

Pre-approval

HomeLight

JULY 31, 2020

Loan approval. For most buyers, financing a home through a bank or lender with a mortgage loan is necessary to purchase the property. In fact, buyers should go one step further (if they can) and get pre-underwritten for a loan , which offers even more security for both buyers and sellers. Problems with the title. Dodge move.

Closing

Real Trends

DECEMBER 27, 2022

Before a mortgage is approved, lenders will have a property appraisal. On the buyer’s side, if a property’s appraised value is lower than the contract’s value, the mortgage may be declined; the mortgage may be approved if the buyer contributes cash up-front (to make up for the difference in value). Home sale contingency.

Sales

Housing Wire

APRIL 23, 2025

Waive the home inspection contingency I would never actually recommend this strategy as a buyers agent; however, there are some situations where a buyer will insist on waiving their inspection, and it makes sense for them to do so. This typically happens on a Sunday or Monday prior to the offer deadline.

Inspection contingency