What's Better: Buying a House with Cash vs Mortgage?
Kelly K. | Nov 23, 2021
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By Kelly K. on Nov 22, 2021
You’ve scoured the internet, bookmarked layouts in Architectural Digest, binged every Denver-based episode of House Hunters, and crafted a wish list of features for your future home. But, what about your wish list for finding the right Denver mortgage company to make that dream a reality?
Buying a house is probably one of the biggest financial investments you’ll make in life. And having the right lender in your corner is an essential piece of the homebuying process. Don't settle for anything less than a great experience.
Finding the best mortgage lender is more than just securing the lowest interest rate possible. Here’s a look at how the right mortgage company can help you win in the Denver housing market.
While the mortgage process may appear to be similar across lenders, not all mortgage companies are the same. Key differences include fees, the level of customer service you'll receive, how quickly the underwriting process can get done, and whether the lender can help you make the most competitive offer possible -- all these points make it worth your time to do your research.
What you should expect from a mortgage lender:
Great mortgage rates
Flexible mortgage options
No hidden fees or "gotchas"
Easy to work with
Fast underwriting process
So how do you choose a lender? From conventional banks and credit unions to mortgage brokers and nonbank mortgage lenders, there are many options on the market today to consider. Long gone are the days when your only option was the local bank down the street.
And while you shop around, remember that a competitive interest rate is a given but not your only consideration. For instance, it’s important to choose a lender that is reputable, responsive, exercises transparency, and offers top-notch customer service — a lender that drags their feet and prevents you from closing quickly can cause you to lose out on your Denver dream home.
Like your real estate agent, your mortgage lender should be like a partner in the process. Buying a house in Denver should be a joyful experience; make sure your lender will set you up for success.
According to the Wall Street Journal, 68.1% of all U.S. mortgages issued in 2020 came from nonbank mortgage lenders, up from 58.9% in 2019.
Homebuyers are getting wise to the fact that they don't need to rely on old-fashioned, traditional banks to help them buy their dream home. Yet, most would-be homeowners are not aware that there are alternatives to old-fashioned, traditional home loans, also.
They don't realize that buying a house doesn't need to follow the same traditional (and slow) process their parents used when they bought a home -- a process that, frankly, doesn't work well for buyers or sellers.
So what's the alternative? Accept.inc has turned the mortgage process on its head with an innovative loan product that allows buyers to make strong cash-only offers, with unmatched speed-to-closing and no delays due to financing and appraisal contingencies. Accept.inc is the first and only iLender, or a “technology-enabled lender”, which has facilitated hundreds of millions of dollars in real estate purchases between ordinary homebuyers and sellers in Denver to date.
Waiting to see if your lender will give your loan the green light of approval after your offer has been accepted? Nerve racking. Having the rug pulled out from under your feet and your dream home ripped away at the last moment all because of a financing contingency? Heartbreaking and, frankly, unnecessary. Seriously, it’s the 21st century, there has to be a better way.
And there is. At Accept.inc, we’ve flipped the script, performing the underwriting process upfront. This allows qualified buyers to become Cash Approved™ before they ever make an offer on a home. So, what exactly does that mean? As a buyer, you have proof of funds when you make your offer. Congrats, you're now negotiating with the power of cash.
Lose. Rinse. Repeat. That doesn’t exactly sound like a formula for success to us. By working with the right Denver mortgage lender, you can hop off the merry-go-round of failed offers and improve your chances of scoring a win.
Picking a proven mortgage lender who gets deals done and who comes recommended by trusted real estate agents can protect you from falling victim to bait-and-switch ads or brokers who forward your information to anyone and everyone willing to buy leads. You’re not just buying a product, you’re looking for a partner who will work alongside you to get the deal done.
In today's housing market, you want to pick a lender that’s innovative, providing a creative and strategic solution that moves beyond the traditional mortgage process. Because let’s face it, the traditional mortgage process is stressful for both buyers and sellers.
Historically, making an all-cash offer meant a homebuyer didn’t need to secure a mortgage. This was once reserved solely for investors, developers, and the rare one-percenters who had the capital needed to purchase a home outright.
Today, however, we’ve leveled the playing field, providing everyday homebuyers with the proof of funds needed to make a cash offer. Accept.inc's Cash Approval process can be incredibly powerful, increasing your chances of making a winner offer by 4X. Why? Because the sale no longer depends upon your ability to successfully procure financing after a seller has already accepted your bid.
The financing process is straightforward, with no strings attached and no hidden fees. In fact, there are no additional fees for an Accept.inc cash offer beyond the customary fees of any traditional mortgage.
Great mortgage rates? Check. Accept.inc’s mortgage rates are very competitive.
Flexible mortgage options? Absolutely. We offer a variety of financing options.
No hidden fees? Guaranteed. Our cash offer service costs the same as a traditional mortgage. We don't add any additional fees or points when compared to a traditional mortgage offer.
Easy to work with? You bet. We pair our approved buyers with an Approval Specialist, so that they have someone to personally walk them through the process. We also have a Cash Transaction Specialist who works closely with the buyer's agent to submit the offer. Check out some of our buyer reviews and agent testimonials for more proof.
Helps you make the best offer? Here's another area where Accept.inc really shines! Because we give you the ability to make a cash offer, you're more likely to win in a bidding war, as well as negotiate the best deal. Sellers know that cash offers close faster, with no risk of offers falling through due to financing contingencies.
Year over year, the Mile-High City is named one of the U.S. News & World Report's best places to live. From the area’s thriving economy to its vibrant culture, great school districts and a slew of outdoor activities, it’s no surprise the population has seen an estimated 21.2% increase in the last 10 years.
It’s no secret either that the Denver housing market is competitive. Even as the hot market begins to cool, like any other metro area, it still comes with a higher-than-average cost of living. And while the median household income in Colorado is above the national average, any type of cost savings a homebuyer can secure is incredibly valuable. Especially when having to contend with multi-offer scenarios.
When you're making a cash offer on a house with an Accept.inc mortgage, you have more negotiating power.
Just like the lowest mortgage rate isn't the only consideration for buyers when choosing a loan (though of course Accept.inc has highly competitive rates with no additional fees), neither do house sellers only care about the highest offer.
Because all-cash offers are attractive to sellers due to their certainty and speed, buyers with cash in hand have morhe negotiating power over those with traditional financing. Whether that means you can make a lower offer or you ask for extra concessions, the power of cash is undeniable in both a seller's and a buyer's market.
Are you ready for your next Denver house offer to win? Get started by becoming Cash Approved™ today.
Kelly K. | Nov 23, 2021
Kelly K. | Nov 23, 2021
Kelly K. | Nov 22, 2021