ALL CASH OFFER (But I have a pre-approval letter)

[Montez Greer]

So I put in an offer on a house for $75,000 ALL CASH. I plan on getting that cash from a Hard Money Lender. When my agent asked me for proof of funds, I sent them a pre-approval letter from my Hard Money Lender. Now the Seller's agent is questioning, if I'm paying ALL CASH, why do I need an approval letter?

We tried explaining the process of getting a Hard Money Loan, but either she doesn't understand, or maybe I don't fully understand. But we told her that the seller will get their money in cash, no matter where or how I get it.

What am I doing wrong? And how do I get past this Contract phase? Because I really want to just get this house under contract and move on before it gets too cold out. 

[James Galla]

@Montez Greer

If the cash isn't in your bank account, it's not an all cash deal. Draw the funds first then you can claim "all cash." The pre-approval letter doesn't mean much other than on preliminary investigation by your lender, you possibly qualify for the loan. From their standpoint, they don't know what conditions those funds will be released to you on. After the pre-approval, you normally get a "loan commitment."

Hope that helps and good luck.