Traditional Mortgage or All Cash Then Recap

[Matt Woods]

I would like to pose a question to those who are experienced with residential real estate financing. If you are fortunate enough to have cash, you have two financing options: 1) Get traditional mortgage at time of home purchase 2) Buy home with all cash, and subsequently get bank financing to take out equity All else equal, will you get the same financing terms from a bank in these two scenarios? Or is there some advantage to getting the financing up front? (Do banks offer better or worse terms?)