Proof of funds cash offer (contingent, documentation, mortgage, mortgage company)
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We want to offer on a house, in California. We will have the full amount in cash in 6 weeks. The money is being given to us from my father, he is inheriting the money in 6 weeks from the sale of a property, it is being bought back by the church who originally owned it and is not a usual sale in that it was agreed months ago, a done deal, but he had until mid sept to live there and complete the sale.
So, the Realtor is saying he's in Escrow so we don't have the proof of funds. Isn't it still acceptable to put in an offer with proof of the date of this completion mid Sept? It feels rather insane to be able to offer $900,000 in cash but not be able to actually offer this yet, even though it's all agreed from our end? Who really can come along and have that much money to offer cash lol. Aren't most offers dependent on a sale of a house or loan?
They won't take a non refundable deposit.
Any ideas? We don't want to wait 6 weeks to put offer in.
You're expecting someone to pull their property off the market and wait for you to get your cash is six weeks. Good luck with that if you're in a seller's market. Unless the property has been sitting for quite some time don't expect the seller to accept your offer as primary. They will probably want to continue marketing the home and you'd be considered a backup offer. My wife wanted to do the same thing, but I told her we don't make an offer until we have money in hand. Our realtor agreed with me.
I think you may have to wait. Are you in a seller's market? I'm assuming that you are, given that you are in California and looking at homes around the million dollar mark.
I wouldn't accept an offer without proof of funds in all but the most brutal buyers markets. It's far too risky, when there are other potential buyers who do have proof of funds or a pre-approval letter from a mortgage company that are better bets.
Okay, I just thought many buyers offers would be contingent on the completion of the sale of their house, or via a pre qualified loan offer? I guess more people have that amount of cash in the bank than I thought..
If you don't currently have the cash in hand, you're not a cash buyer. You would have to submit an offer "contingent" on getting the cash, so you are actually a financed transaction being financed by the sale of another transaction.
Would you accept a "cash" offer on your property where the buyer doesn't actually have cash to offer you and says "this domino has to be in place to make this domino fall and me get my money..." That's not "cash".
Okay, I just thought many buyers offers would be contingent on the completion of the sale of their house, or via a pre qualified loan offer? I guess more people have that amount of cash in the bank than I thought..
I bought a house this spring and it was contingent on the sale of my at the time current house. When I submitted the offer, I not only had to submit my pre-approval letter from the bank, but I also had to submit the offer from my buyer, my buyer's pre-approval letter, and the inspection resolution form. There was a lot of documentation, as there should be.
Cash buyers have a lot less documentation, but they do actually have to prove they have the funds. The same way a buyer who needs to get a mortgage has to prove that their credit and income is sufficient to obtain a mortgage in the amount needed.
What you are suggesting is making an offer contingent on the fact that you might get the funds to pay for the home. That is very different than making an offer contingent on other factors that can be documented by third parties in writing.
We want to offer on a house, in California. We will have the full amount in cash in 6 weeks. The money is being given to us from my father, he is inheriting the money in 6 weeks from the sale of a property, it is being bought back by the church who originally owned it and is not a usual sale in that it was agreed months ago, a done deal, but he had until mid sept to live there and complete the sale.
So, the Realtor is saying he's in Escrow so we don't have the proof of funds. Isn't it still acceptable to put in an offer with proof of the date of this completion mid Sept? It feels rather insane to be able to offer $900,000 in cash but not be able to actually offer this yet, even though it's all agreed from our end? Who really can come along and have that much money to offer cash lol. Aren't most offers dependent on a sale of a house or loan?
They won't take a non refundable deposit.
Any ideas? We don't want to wait 6 weeks to put offer in.
Thanks!
Unless you make this a joint ownership with your dad you are going to pay a ton of gift tax. Make sure that you also have right of survivor ship.
Make the offer contingent on the sale of the other property.
Run this by your lawyer. See if he or she likes the idea.
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