Welcome to Creative Financing

A  cash offer is an all-cash bid, meaning a homebuyer wants to purchase the property without a mortgage loan or other financing. These offers  are often more attractive to sellers, as they mean no buyer financing  fall-through risk and, usually, a faster closing time.

With a cash offer on the table, the buying and selling process is a little different than it would be with a mortgage involved. For  one, the process is generally faster. There’s no mortgage application,  documentation, or underwriting, and the buyer typically doesn’t need an appraisal. As a buyer, you’ll still need to sort out the title policy  and insurance, provide proof of funds, and sign closing documents.

Here are some other ways the process can differ from cash offers:

• With a cash offer on the table, the buying and selling process is a little different than it would be with a mortgage involved. For  one, the process is generally faster. There’s no mortgage application,  documentation, or underwriting, and the buyer typically doesn’t need an  appraisal. As a buyer, you’ll still need to sort out the title policy  and insurance, provide proof of funds, and sign closing documents
• Appraisal: Appraisals are typically lender-mandated, so without a lender, a buyer  usually won’t have to worry about them. There are some cases in which a  buyer may still want an appraisal, though — especially if they’re an  investor looking to guarantee returns.
• Closing: The closing process on a cash offer is much more simple. As a buyer,  you’ll sign the settlement statement, title, and deed, hand over a  cashier’s check (or wire the money), and receive your keys. Without  financing in tow, the paperwork is reduced significantly. Your closing  costs are also lower since there aren’t any lender fees attached.
• Title & escrow: As a buyer, you’ll still need a title and escrow company to handle the  transaction, but you may have more leeway in choosing these parties  without a lender involved. Shopping around will help you compare fees.