Cash Vs Hard Money Prequal Letter To Bank
A prequal letter to a bank is a letter that states a borrower has been qualified for a loan by a bank or private money source. A prequal letter from a hard money lender should have the same impact as cash would have in relation to a seller deciding on an offer. What I mean by this is that a buyer showing cash in a bank account should have the same weight as a hard money lender's prequal letter. The reality is, it depends on how in tune with the investment world the seller is and the sellers agent. If the seller is aware of hard money and the company qualifying the borrower, then the hard money prequal letter is as good as cash because it is in fact a form of commitment. The other major function is the fact that cash buyers close quickly and a good hard money lender will be able to close just as fast as someone with cash. This is why savvy sellers agents or sellers are aware that a hard money borrower is interchangeable with cash buyers at closing. A hard money lender can and sometimes does supply a proof of funds which acts as the same as the borrower showing cash in their own account. This is rare, but can be done to have the same impact on the seller in order to get the property.
Ian Walsh215.839.3271
Comments