In a world where selling a house almost always means the buyer taking out a mortgage, the idea of selling it to someone who already has the cash to pay for it is foreign to many sellers. You may not have even heard of such a thing before. So what does it mean to sell your house for cash?
Financing
Financing is how most buyers afford a home. There’s a lengthy process that buyers go through in order to obtain a mortgage. Income, credit history, and debt-to-income ratio must all be examined. Once a buyer has made an offer, there are many details that will need to be reviewed. The buyer’s finances, property details, and inspections will all need to be reviewed by the lender to ensure that everything is as it should be in order for the loan to go through. Once the loan goes through, the seller gets paid.
Cash
The process of getting paid for a house with cash is fairly simple. Once an offer has been made and agreed upon, the buyer will meet with the seller to close the deal. The necessary documents will be signed and payment can be initiated. Calling the payment a cash payment may be slightly misleading. It’s not like you’re going to be handed a briefcase or bag with the money. That wouldn’t be secure or safe. Instead, the money will be transferred electronically to your account. That’s a much safer, more secure way to get paid.
The Difference
Perhaps the most significant difference between selling your house to someone with a mortgage and someone who already has the cash to back up their offer is how much more quickly the latter happens. Closing with someone paying in cash can take as little as a week, whereas closing with a lender involved can take a month, sometimes more. Another difference worth noting is that deals involving a mortgage are more likely to fall through in comparison. They also usually involve commissions and fees, whereas that isn’t always the case when selling for cash.
Different approaches to selling a house work better for different people. Going the traditional route of hiring a local agent to sell a home on the market doesn’t always make sense for everyone. The same can be said of selling a house for cash. This is why it’s so important to understand each of your options. That is what allows you to find the best solution for you and your situation.
Do you have questions about how selling your house for cash works? Minnesota Home Guys has the answers. Click here to learn about how it all works today!
