“Cash is King”

A phrase as old as cash. And a phrase too often heard by realtors representing buyers. It can sting a bit when a buyer loses a bid because they don’t make a cash offer.  Now, there’s a solution – The E5 Home Loans “Cash is King” program.

It puts a buyer in the strongest position possible to get the winning bid on a home purchase.  We give buyers a competitive advantage in the current seller’s market by removing the following barriers:

• Quick close times
• Seller’s fear of financing falling through 
• Purchases contingent on the sale of a current home

There are 3 components designed to assure sellers their home will sell and will sell on time, as part of the Cash is King program. Buyers at least want a chance, and sellers want to know their home sale will close.  That’s what everyone cares about. We continue to hear stories about sellers accepting the attractive all-cash offer. Many investors tie up a home prior to their due diligence. Only when the investor gets to the inspection do they run numbers to see if the property will cash flow. If it doesn’t, they walk. Meanwhile, a qualified family looking for a place to call “home,” misses out and moves on to another property, again in another competitive situation.

Real buyers can now be just as competitive with a “monetary assurance,” a cash offer, and a current home buyout backing their loan. 

Part 1 – What is a “monetary assurance?”

I’m glad you asked. First, we pre-APPROVE buyers. This means we collect all the necessary credit, income, and asset documents upfront, then have our underwriting team approve the loan. Protect Your Transaction (PYT) gives a $15,000 monetary assurance to the buyer (which they can share with the seller) confirming that the buyer’s, income, credit, and assets have been fully approved by the underwriter. That monetary assurance increases to $20,000 for teachers, veterans, nurses, and first responders.  The monetary assurance lets everyone know the buyer has been fully pre-approved. As long as nothing changes with the buyer’s approved credit, income, or asset situation, and the loan gets declined, the monetary assurance will be paid.  Ditch the standard pre-qualification and get a PYT pre-approval through the Cash is King program.

Part 2 – A Cash Offer

The second level of assurance in the Cash is King program backs up the loan with a cash purchase transaction if the loan isn’t going to close on time. E5’s lending partner will purchase the home with cash on behalf of the buyer, close on time and the seller will receive their proceeds.  The new home is then sold from the lender to the buyer in a separate transaction. This is even a greater assurance that we stand behind the PYT approval of our buyers.

Part 3 – Current Home Buyout

The final piece of the Cash is King program removes the contingency of a buyer having to sell their current home.  We offer a quick and convenient way to essentially trade in their current home.  E5’s lending partner will purchase the buyer’s home at the current market value with a cash transaction. The current home is then re-listed and sold to the best offer, allowing the buyer to participate in additional profits and thus removing the Borrowers sale contingency to buy a new home.

And realtors, don’t worry. The Cash is King program doesn’t eliminate or reduce any commissions.

With any program like this, there are rules and restrictions. We also understand there will be many questions. Contact us to find out the next available webinar or answer any questions. 

If you’re interested in getting a PYT pre-approval with the Cash is King program and making your most competitive offer to purchase a home, give us a call or start an online application below.

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