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This might sound like a dumb question but do I need to get prequalified if I'm paying cash for a home?

by sah654157 from Phoenix, Arizona. 21 days ago Reply

Jim Kenny (
#44 ranked lender in Arizona - 6 contributions

No, but you'll need to show the seller proof of your funds to close.

21 days ago
William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,862 contributions

No.. Pre Qualification is only required if you are financing.. The seller/sellers agent will most likely ask you for for proof of funds. The best way to handle this is to go to your bank and have them write a letter that states you currently have sufficient cash assets to cover the sale price of the home you are looking to purchase.. However, if you talk to any financial adviser, hey will tell you that paying cash for a home is not the best place for your funds.. If you can borrow for 4% to 4.5%, but you can make 8%-12% or more leaving your money in investments,,, then your far better off leaving the cash in the bank rather than putting into a home. I know most financial planners have software to show you what you would be missing out on by paying cash instead, but before you pull the trigger, you should definitely look at other options.. Remember, "CASH IS KING"!! The more you can keep in your account the better. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

20 days ago
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