Financing Question - Cash to Conventional

[Joel Shupe]

Hey all, newbie question here:

I have identified and negotiated a solid deal - numbers beat my targets, and I would hate to let this one slip away.  The gist of it is that the seller wants a cash deal, and doesn't want to wait for my conventional financing to go through.  The question is this, if I were to borrow the cash to complete the deal, could I then instantly finance/refinance the property into a conventional loan?

Follow up - by doing a cash deal upfront, would I save the seller any closing costs that I could exploit to lower my offer?

Appreciate the insight!

Joel

[Chris T.]

Yes, you can refinance as long as you meet the lender's underwriting requirements, and assuming the property is in a decent shape to be financed

No, you will not save the seller any closing costs. Both parties are still responsible for their own costs.

It sounds like the seller is in a hurry to close. Personally, I would show the seller the proof of funds, offer to close faster for a lower price. If the seller doesn't seem interested, then revert back to your original offer, but with financing.