A local lender offers a unique way to compete with cash offers

We spoke with a local lender to find out how she’s competing with cash offers in the market.

As experienced real estate agents, we see firsthand how financing can impact both buyer and seller, and ultimately lead to a winning deal.

Why is financing one of the most important parts of your home buying journey? 

Because your financing contingency can make or break your offer. 

In today’s competitive market, the financing contingency portion of the purchase contract plays a huge role in standing out to a seller who has 10 other above-asking offers.  You want to give the seller confidence that no financial mishaps will sour their deal. 

That’s the reason why finding the right loan that meets your needs and looks attractive to the seller is so important. There’s no one size fits all here. The right loan for you is dependent on your unique situation, financial background, appetite for risk, motivations and obstacles. Come and talk to us and we will connect you with the right lenders who can sit down with you and walk you through options that are tailored for you and your needs.  

We sat down with one of our preferred local lenders to talk with her more about one of their programs our client used recently to secure a condo over other offers to share the details of how it works. 

How does she compete with cash offers?

To compete in the modern market, Fairway offers a Cash Guarantee to give buyers who aren’t able to buy in cash the strongest alternative. The Cash Guarantee doesn’t mean the buyer is required to purchase in cash themselves, it means Fairway is confident enough with their pre-approved underwriting that they’ll buy the house if their financing falls through. 

For the seller, this means they can have complete confidence that even if the buyer isn’t able to get financing, they can still get the appraised value of their home from Fairway, or receive a $10,000 lump sum payout, cancel the contract and re-list it to sell to another buyer. That’s an offer that’s hard to refuse. 

How does it work?

To get customers set up for the possibility of a Fairway Cash Guarantee, Patty starts all the paperwork for the pre-approval process as soon as you select her as your lender.  This involves taking all your financial information and underwriting a complete loan file with a ‘to be determined’ address…. even before you have a home in sight! All conditions and questions from the underwriter are addressed and completed upfront. 

Because you’ve been through underwriting, your offer to purchase does not have a financing contingency. Fairway has 100% approved the customer’s information in detail. 

This means that everything is ready to go, so that you can act fast when you do find your dream home and are ready to make an offer. You can approach the seller with confidence that your loan is completely underwritten, approved and ready to close. 

Once you’ve won the offer, the appraisal and clear to close are fast-tracked.

And if the worst happens – you lose your job, or your financing falls apart, Fairway will buy the house at the appraised value. Or the seller has the option to cancel the contract, receive a $10,000 lump sum from Fairway, and go back on the market with this additional money in their pocket.

If you’re serious about buying, it’s never too early to have a conversation with us and start speaking with a lender. And if you’re selling, we’ll be able to help make sense of the financing contingcies attached to each offer, so you’re confident about the deal.