Cash Offer (TX): The How To?

Hey – for the life of me, I cannot find a good discussion on the steps to take (and tradeoffs) with respect to offering cash on a home. If there’s anybody out there that could help answer a few questions, would be very appreciative!!

Background:

Planning Houston purchase later this summer. $1-1.5MM homes. Currently rent.

Access to $800k in liquid assets. Access to $500k in “hard money” short term loan from family (i.e. borrow $500k for 30-60 days to make offer). Compelling borrow profile for loans (no issues here).

The Questions

I’d assumed that cash-offers would put me at a distinct advantage vs. other purchasers. Idea was to offer-up a cash bid and then refinance (60-80% LTV) a month or two after close.

I have run into a few questions which I cannot resolve.

1) Degree of advantage: obviously varies by seller, but can I expect to save a couple % (vs “winning with a financed offer)?… more… less?

2) Title insurance and other fees: Texas has beefy title fees. Would I have to pay twice? (that’s another $8k+ in costs)

3) Mortgage rate: Can a lender finance this as a purchase?… or would I be dealing with a higher rate?

4) Hard Money Finance: Would the fact that I borrowed the $500k for cash purchase create issues at point of financing?

5) Any other costs or factors to consider?

submitted by /u/ResEng68
[link] [comments]

Hey – for the life of me, I cannot find a good discussion on the steps to take (and tradeoffs) with respect to offering cash on a home. If there’s anybody out there that could help answer a few questions, would be very appreciative!! — Background: Planning Houston purchase later this summer. $1-1.5MM homes. Currently rent. Access to $800k in liquid assets. Access to $500k in “hard money” short term loan from family (i.e. borrow $500k for 30-60 days to make offer). Compelling borrow profile for loans (no issues here). — The Questions I’d assumed that cash-offers would put me at a distinct advantage vs. other purchasers. Idea was to offer-up a cash bid and then refinance (60-80% LTV) a month or two after close. I have run into a few questions which I cannot resolve. 1) Degree of advantage: obviously varies by seller, but can I expect to save a couple % (vs “winning with a financed offer)?… more… less? 2) Title insurance and other fees: Texas has beefy title fees. Would I have to pay twice? (that’s another $8k+ in costs) 3) Mortgage rate: Can a lender finance this as a purchase?… or would I be dealing with a higher rate? 4) Hard Money Finance: Would the fact that I borrowed the $500k for cash purchase create issues at point of financing? 5) Any other costs or factors to consider? submitted by /u/ResEng68 [link] [comments]

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