If I paid for a house completely, I get a traditional 30 five-year mortgage on the property?

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We are looking to buy a house, but they are required for all species. After purchasing the property with all cash, we can use a traditional 30 years loan?

5 Comments
  1. Reply
    Judy
    April 29, 2011 at 11:28 pm

    Consider a bridge loan.
    Re-financing your current home
    Or taking out a home equitity loan – up to 75% of your current home value.

    They may just be asking cash from a bank.
    They may just nervous that you are not pre-approved or pre-qualified for a loan.
    Sometimes if you are neither a seller will come up with an excuse so that they won’t have to go through the hasltle of a long closing or you being turned down.

    Pick up your phone call a bank and make an appointment.
    You want a pre-approve or pre-qualification letter so you can be treated with some respect. Banks do not charge for this service.
    Note something tells me you are dealing with an expensive home.
    It’s only the snotty people that would give you the brush off like that.
    /

  2. Reply
    wizjp
    April 30, 2011 at 12:04 am

    uh…traditional mortgage is not placed on the house untill the deed has transferred and “cash” has been paid.

    Something is not right here.

  3. Reply
    linkus86
    April 30, 2011 at 12:21 am

    Absolutely. It is done every day. But, what your seller may not understand is that by getting a loan for the original purchase, the seller can receive cash at closing.

  4. Reply
    Rick B
    April 30, 2011 at 12:53 am

    YEs, but why would “they” care? If you get a mortgage, the seller gets a check just as if you paid them cash for it. It makes no difference at all to them.

    If you can afford to pay cash, why on earth would you finaince it and pay all that money each year in interest? IT is very unlikely your money is earning more than the 5% to 6% you will pay in interest.

    If you insist on doing it, I would recommend a 15 year mortgage, not a 30.

    Personally, I would prefer to be debt-free.

  5. Reply
    KL
    April 30, 2011 at 1:00 am

    You can but you will have to wait a few months (most lenders require 6 months.) The refinance will be considered a cash-out transaction since you’ll own the home free and clear.

    As for the one poster saying to do a bridge-loan, I would advise against that (even if you can find a company that will do it.) Highly risky and expensive.

    One thing to keep in mind is why the seller is asking for cash. The property may not be eligible for financing due to it’s condition, type of property, unapproved condo, etc, etc. So even if you may qualify for financing the home may not.

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