In a competitive housing market, putting out home offers can feel like a numbers game. In many cases, sellers will choose the home buyer with the all-cash offer versus the one financed through a lender. The reason? An all-cash offer provides speed and certainty that a financed offer can't contend with.
That's why NAF Cash* is here to help you compete with (and win) against other offers in bidding wars.
NAF Cash is helping you become a cash buyer. Here's how it works: NAF Cash purchases a home upfront, with cash, on behalf of the buyer. Meanwhile, the buyer secures permanent financing with New American Funding, and NAF Cash then sells the property back to the buyer for its original price plus a small service fee.
Not only does an all-cash offer give the home buyer a competitive edge, but sellers prefer the convenience and certainty of it as well. Two aspects that benefit the buyer and the borrower are that there are no financing contingencies and you can close on a home more quickly which will get you settled into your dream home faster.
Why Having Fewer Contingencies Gives You a Leg Up in the Home Buying Process
A financing contingency is a clause in a home purchase agreement that makes the sale contingent on the buyer securing financing from the lender. If a buyer cannot guarantee funds, then the buyer can back out of the sale without penalties.
When a buyer is working with a lender to buy a house, here are the common factors that could impact the financing contingency:
- The borrower's credit score - It's one of the most important factors that lenders consider when deciding whether to approve a loan. It indicates whether a borrower is high-risk or not.
- The borrower's employment status - Lenders generally prefer borrowers who have a history of stable employment. Job gaps or frequent changes could present them as a higher risk.
- The property's appraisal value - the appraisal determines how much a lender is willing to loan for the property. If the value is lower than the agreed-upon purchase price, the lender may only be willing to lend the agreed-upon purchase price. The buyer would then have to supply the difference in cash. Often the finance contingency goes into effect when the buyer can't come up with the difference.
- A title search - this step is an important one as it ensures that the seller has the legal right to sell the property. It also provides no outstanding liens or claims against the property. If there are any issues, a lender might require resolution before financing, causing delays or loss of the loan.
As an all-cash buyer, NAF Cash eliminates the need for a financing contingency. That means the sale is less likely to fall through due to financing, making the home buyer's offer more of a certainty for the seller.
Close on a Home Faster with an All-Cash Offer
Another bonus to buying a home with an all-cash offer is that the homebuyer is already approved by New American Funding, an affiliated company of NAF Cash, within 48 hours, the buyer can close the deal faster, eliminating timeline delays, making it a more desirable scenario for the seller, and getting you in your dream home faster.
A mortgage typically takes 30 to 60 days or even longer to close due to the various steps in the process, which include:
- Income verification
- Employment verification
- Credit history compiled
- Financial documents review
- Property Appraisal
- Underwriting the loan
- Preparing necessary documentation.
There Are Many Benefits to Closing Faster on a Home for Both the Buyer and Seller
Working with NAF Cash helps the borrower and seller avoid potential delays or complications in the transaction process. Closing on a home faster is attractive for various reasons.
The benefits for closing a home faster for buyers include:
- Saving on paying additional rent or mortgage payments
- Being able to move into the new property faster
- Take advantage of favorable market conditions
When a buyer purchases with an all-cash offer and the seller can close faster, they benefit by:
- Saving on additional holding costs
- They can move on to their next property
- They can close a deal before the market changes
If you have any questions or would like assistance navigating the process. A NAF Cash associate will help guide you through the steps of making a competitive all-cash offer and get you on your way to purchasing your dream home.Get Started
*Loan products offered by New American Funding, LLC. dba New American Funding. NMLS #6606. www.nmlsconsumeraccess.org. Terms and Conditions apply. Loan products subject to credit and property approval. Not all applicants will qualify. © 2023 New American Funding, LLC. New American and New American Funding are registered trademarks of New American Funding, LLC. All Rights Reserved. Corp Office 14511 Myford Rd, Ste 100, Tustin, CA 92780. Ph 800-450-2010.