In many areas, prospective homebuyers understand how difficult the housing market has been. Inventory is tight, prices are up, and competition is intense. In fact, the nation is experiencing one of the most competitive housing markets in history. If you’ve been searching for a home, you can agree.
What’s Happening with The Real Estate Market?
Homebuyers are finding it hard to compete with other buyers who are making offers well above the asking price. That’s when a good strategy comes into play to ensure your offer gets accepted. One way is to make a cash offer. Making an all-cash offer is a competitive step to secure the home of their dreams, but many all-cash homebuyers don’t want to tie up their cash permanently.
We’re Helping Clients Win the Home of Their Dream
Greenway Mortgage has the solution. With our Delayed Mortgage Financing Program, homebuyers are able to win bidding wars with an all-cash offer upfront, close with their cash reserves, and recoup their assets once the transaction closes without having to wait for the traditional 6-month seasoning requirement.
What is Delayed Financing?
Delayed Financing is a unique financing option that allows home buyers to obtain a mortgage loan after purchasing a property in all cash. By utilizing a "delayed financing" cash-out refinance option, borrowers can recapture their funds and waive the 6-month cash-out seasoning requirement
How Does Delayed Financing Work?
Delayed financing gives homebuyers the power of a cash offer while also allowing them to get a mortgage on a home.
- A borrower purchases a property from a seller in all cash.
- Apply for the Delayed Mortgage Program (application must be made within 6 months of the closing date).
- Borrowers utilize the cash received at closing to replenish the cash used to acquire the property.
Keep in mind that this is still a loan. Borrowers need to apply for the mortgage loan, supply the required documentation and pay back the loan.
What Are the Benefits of Delayed Financing?
Amidst a purchase season that’s highly competitive, delayed financing is a valuable mortgage financing tool when home buyers need to more quickly & strategically. Here are three key benefits:
- Beat out the competition with a stronger cash offer
- Consider a broader range of properties
- Allows investors to remain liquid
For more information and details on our Delayed Mortgage Program click here.
Bottom Line:
In this highly competitive housing market, a cash offer is key to closing the deal on a new home. Delayed Financing may be the right strategy for you to beat out the competition. Don’t get discouraged, the home of your dreams will come along! Experts expect bidding wars to ease in 2022, so there’s some light at the end of the tunnel for homebuyers.
In the meantime, if you’re interested in seeing what homes are going for in your neighborhood or in a neighborhood you’re looking to purchase in, check out our Recent Sales Tool here. Simply plug in an address and we’ll create a list of recently sold properties nearby! Happy House Hunting!
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