Cash Closing’s in Georgia
Making an investment in the real estate market is always a big accomplishment. Usually, people prefer to make these payments via lender fronts and then take some time to pay them back. However, from the past few years, the trend for cash closings is also rising in Georgia. People are now interested in making payments out of their pocket during the closing process.
Well, cash closings have their own advantages and disadvantages. Most of the people prefer them just because it helps to avoid the complicated paperwork associated with real estate closing. However, in order to make adequate decisions about cash closing in Georgia, it is first important to collect enough information regarding this fact.
What is important in cash closing deals?
Being able to close a real estate deal with cash is a big matter. When you do not involve any external institution in the process, or complete the process in-house, it may help you to minimize the paperwork by a great extent.
Depending upon the type of property you are planning to invest, it is possible to make arrangements for completing the transactions in the most convenient manner. The cash closings become more beneficial for everyone involved in the process. Such deals can be made only when you have in-depth knowledge about the transactions in the real estate world.
One needs to understand what title companies do while doing closing in Georgia. The idea is to ask professionals about which documents are more important and which ones are discretionary in nature. For some properties, it is really good to hire an agent; especially when you are making a huge investment. However, in many cases, you may even close the deal yourself.
Making a cash offer for real estate property:
In case if you have kept a considerable amount to buy a new house, and now you have found that dream house; it is first important to share that you are planning to make payment in cash. It will help the sellers decide whether they can process such deals or not; usually, it is regarding the financial management of an individual, and the cash closings may not be feasible for all. Usually, cash offers also provide some relief related to inspections and appraisals that are involved in the offers made through lenders.
Those who are planning to hire an agent to make deals for buying a real estate property are advised to tell the agent in the beginning that they want to pay in cash. It will also help the agent to make appropriate decisions for the negotiation process as you will be paying a lesser amount as compared to the other buyers that are financing for the home purchase. The pre-discussion regarding payment makes things clear for both parties and everyone involved in the process.
Proving the availability of funds:
Even before you present your offer to buy the real estate property, you may need to show that you have enough funds to make payment in cash for the respective purchase. It is important to mention that no seller wants to close a deal for some spoken words without having any proof regarding the funds. The best way to present your offer is to show them the bank statement proving that you have enough funds in your account. Some of you might be little hesitant in showing bank statement; they can get proof of funds from their respective financial institution. This document can be handed over to the agent of the sellers.
Before you finalize your appointment with the other party, it is important to understand that banks usually take a few days to prepare the proof of funds. Many sellers are ready to wait for a few days to get the document, but many others may be in a hurry to sell their home and may want to see the letter from the bank immediately. Hence, it is better to request your financial institution to prepare the proof in advance. In case if the other party or the seller’s agent is ready to accept the bank statement, but you are not interested in revealing all the information mentioned in that, it is possible to blackout those details; it can be the account numbers or other secret information.
Time frame for cash closing:
Most of the home buyers believe in a misconception that cash closing can help them to buy a house just in a few hours. Well, although the process cuts down many time-consuming parts of the real estate investment process, the deal may still take some time to close. It is important to schedule the title search and property inspection on time; these things usually take time, and you cannot push them. However, you will still be able to save much of your time that may otherwise go with the lender’s process. In many cases, lenders may even take more than 30 days to complete the task.
Also, in case if you are buying property from a seller who is actively involved in some other sales as well; the time frame may increase again. In case if you want to close the deal immediately, it is possible with the houses that are open for foreclosure. It may even help you save some money as a low offer may also work with ease.
If we assume that the property inspector at Georgia will cooperate in the right manner, then the real estate deals can be closed on time. When other parties are giving positive response for closing the deals, you can even set the deadlines. In case if the house needs some repairs or improvements before closing the sales; you may need to consider the time involved in that as well. In general, we can say that sale closure with a cash payment may take around 30 days by considering all the mentioned factors.
Once all the related processes are over, you can make payment in cash and collect the essential documents. Soon you can shift to your new home and decorate it the way you want.