Reply to What does "all cash" mean?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]B.

No mortgage is involved so no unforeseen circumstance (as in bank denies mortgage if the appraisal comes back less than the offer ...).

Yes, you have to provide bank statements with the offer.[/quote]

OP here. Could I provide the bank statements, and waive the financing and appraisal contingencies, then still turn around and get a mortgage? That would still make me "all cash", right? Maybe it makes no difference, but it seems like sellers are increasingly obsessed with getting an "all cash" offer. I guess I'm just trying to figure out if lots of these "all cash" buyers show the assets on paper, then just turn around and get a mortgage.[/quote]

Waiving the financing contingency, only means that you will agree to the terms of the contract including the closing date regardless of whether any external financing comes through.  When you are "all cash" you just say that you have the cash on hand.  Whether you take out a mortgage is up to you, but you, the mortgage applicant, take on the risk if the bank has to delay when they can close on the mortgage.  If you commit to one date, and the bank later comes to you and says that they need 2 weeks more to verify assets/income/whatever, with a financing contingency, you can delay the closing until the mortgage comes through and the seller agrees to that.  If you waive the financing contingency and present yourself as an "all cash" buyer, you show proof that you have the funds to cover the cost of the sale.  That can be anything from a letter from your financial institution that you have the funds or assets that can be liquidated to meet the cost of purchase.  It also means that should you externally try to get a mortgage, that even if the mortgage lender delays the mortgage, you will still deliver the full cost of the contract to them on the closing date.  And you will get the mortgage later at your convenience.

So, you can do what you want and present yourself as an "all cash" buyer, with proof of assets from your institution, as long as you are willing to liquidate your assets and pay the full price of sale at closing, even if the mortgage lender delays.[/quote]

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