Using traditional financing for a "Cash offer"

[William Glass]

BP,

I am looking to see what advice people have for using traditional financing for making cash offers. From my understanding you wave contingencies except right to inspect, so if property doesn't appraise you've got to find the money somewhere else. 

The market is competitive where I am for small MFs and most sellers won't even look at non-cash offers, especially when they are below asking price. 

I am not concerned qualifying for the loan (credit & income are solid) and will look at back up financing options should traditional fall through. 

What advice do you have from those that have done this or other pieces to the puzzle I may be overlooking?

[JD Martin]

Generally the worst-case scenario if you waive your financing option is that you are going to lose your earnest money if you can't come up with the funds to close, and some mortgage options that the seller might have had to cooperate with you to get done now are off the table. Theoretically, there might be some recourse for a seller to sue you to force the deal closed if you waived the financing contingency, but any seller worth his salt that doesn't know the buyer or trust the deal is going to ask for proof of funds in some limited amount of time or they'll cancel the contract (10 days is common where I am).