Is Cash King or the Enemy?

The word cash when dealing with buying or selling a home can help or hurt a particular transaction. When a seller hears "cash offer" their eyes light up and rightfully so, what better offer to accept then cash.

However, as a lender when you are in the process of helping a buyer with a purchase loan and you hear the word cash you panic. The reason, one of biggest delays with a purchase transaction or worst case maybe even it falling out all together is when the buyer has non payroll deposits in the account they are using for funds to close. When I set the expectations with my clients upfront and continue to coach them throughout the process, one of the first things I tell them is...BEFORE you deposit anything into the account you are using for funds to close the purchase transaction let me know so we can ensure the documentation we can get to source it will be sufficient.

The Lender, Realtor and especially the Buyer and Seller want a smooth transaction every time when it comes to meeting escrow deadlines and getting the buyer into the home of their dreams. So if there is any advice I can give to that potential buyer or some one that may already be in escrow. Call your lender BEFORE you deposit, it can save your loan.