What is Better a Cash or Mortgage offer?

Mortgage and Lending with HomeBridge Financial Services (NJ) NMLS 248937

If you are reading this you know I am a mortgage guy with a few days experience in the industry... so I'll admit I am Pro Mortgage

(after all, I have to eat too!)   

This blog is coming from my own personal experience buying a home myself this year, and watching my clients buy and sell not just this year but over the past 34yrs of putting people into debt.

So, what is better for a seller?

For my entire career I have never understood sellers accepting a lower cash offer over a client that is getting a loan.  Qualified is Qualified after all, and a cash deal doesn't put an extra penny into the sellers hands VS a deal with a mortgage.   I do understand that in this market we have concern over appraisals which is thankfully not on every deal, and that is a driving force in the sea of offers to remove a contingency.  

Have you noticed that Cash buyers can be pickier?  In the market I do most of my business in, these are the buyers that nit pick the inspection.. 

Arguably a mortgaged buyer is better qualified since there is a good chance they can afford more on a monthly basis that a cash buyer. The other side of the "Qualified" world, I have seen many cash deals go bad because that cash does have to come from somewhere, and sometimes it isn't as easily accessible as buyers think, or their financial planner gets in the mix and tells them not to pull the funds, or it becomes a taxable event that can often deplete the actual funds available.

Ultimately, Qualified is Qualified whether there is a mortgage or not and there are risks no matter how the deal is structured.

The other side that no one thinks of... When there is a mortgage involved there is an additional advocate pushing the file to closing.  Here is where your TRUSTED LOCAL Mortgage person comes into play.  For my deals, my processor and I BOTH chase things to get our files to closing coming VERY close to actually doing a third party's job.  I truly believe that without the two of us we have definitely had deals that would not have closed or would have been significantly delayed due to bad settlement agents, slow borrowers and any number of third-party providers that required a push. 

TRID- There is a good side to TRID... That three-day rule keeps us on our toes.... TRID does not apply for a Cash Deal, they still use HUD 1s, no CD as we have become accustomed to in the past 6 years -  

I personally purchased a home Cash this year (after being homeless for 7 months, but that is another LONG story....)  I quickly realized how much I did for my buyers to get them to closing and my own personal closing would not have happened when it did if it were not for my decades of experience in how to close a Real Estate Transaction.  I had to become my own advocate and chase things to get us to closing. If I did not push the Title company for final figures, I would not have had them until the day of closing since they had no 3 Day federal clock that had to tick, my closing was at the bottom of the pile until I pushed. How happy do you think buyers are outside of the industry if they had to rush around to get the funds together the day of closing?

Just remember, it is a Seller's Net that matters, and even more importantly happy Buyers and Sellers at the end of the day. That should be all our goals.


Call me for all your residential lending needs!


Robert Rauf 
Mortgage Loan Originator NMLS# 248937
or my blog: http://activerain.com/blogs/rrauf 
Office: (732)908-4868  Cell (732)740-0175 


Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit www.Homebridge.com for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

Comments (3)

Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

great information. Make it the best Wednesday.  Bill Salvatore

Aug 18, 2021 02:12 PM
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Bill Salvatore - YVP Blog  Thanks for the comment and stopping by!

Aug 19, 2021 11:44 AM
Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.   Thanks for sharing and have a wonderful day!

Nov 12, 2021 07:07 AM