Countrywide states that if an offer “is contingent” upon financing that you have to get pre-approved at one of their retail locations. By choosing to make the offer “not contingent” upon financing does that mean basically it is a cash offer? Or does it just mean you will lose your earnest money if you don’t obtain financing? They have a box to check one or the other.
They say they have to have proof of funds on a cash offer. What would be proof?
Can my HML be considered a cash offer?
What that means is that your earnest money will not be returned if you cannot get financing. The financing contingency protects your earnest money in case your financing is not approved or if the interest rate is too high.
Landmarxpros - I believe Christopher answered your first question. I will try the next two.
If you are doing a cash offer, you can submit as proof of funds a letter from your bank stating that you have the funds available or a bank statement. I just submitted some offers and I decided to print my bank statements and submitted them. I blacked out all the personal information buy my name.
It depends. In my case I am planning to use private money to purchase the property. However to make it more atractive to the bank I submitted as a cash offer with copies of my bank statements. My plan is to get the financing as soon as I hear from the bank. If for whatever reason I can’t get the financing I will close with my own money. So to answer your question - yes, if you are planning to use HML you can still submit as a cash offer. Your risks if you can’t get financing are (1) you will need to close with your own money, or (2) lose your earnest money.
Please also note that if you end up not closing and losing your earnest money, this may also impact your credibility and your ability to close future deals… Propertymanager (an experienced investor in this site) has just posted this comment to one of my threads…
I hope this helps. Good luck!