Cash Is King — But Cash Still Has to Be Ready

Cash Is King — But Cash Still Has to Be Ready

Direct answer: For Grand Rapids and West Michigan cash buyers, a cash closing is easier than a mortgage closing — but only if your funds are actually ready at the closing table, so sell your stocks or other assets and have the money in a standard bank account a good week before closing.

Cash is king — and easier

Cash is king. That is something Steve always talks about in this business. A mortgage has a lot more things in it, so a cash closing is easier.

Everybody believes it is easier, and it is. But easier does not mean automatic.

When cash is not ready

Steve has seen this happen: the buyer is paying cash for the house, and they did not sell their stocks in time for the funds to be ready at the closing table.

All of a sudden, the closing has to happen in escrow, or close later, because those funds have not seasoned or are not ready. A cash deal that should have been simple turns into a delay — not because of the seller, not because of the house, but because the money was still sitting in stocks.

Get the money ready a week ahead

If you are a buyer buying in cash, make sure you cash out of your stocks or mutual funds so the money is in a standard bank account that you can wire the funds from, or bring a check from.

Steve always tells his clients: give it a week. Make sure that money is in your account for a good week before you need to pull it out.

If your lender is bringing the money, with a mortgage, that is a different process. But if you are cash, make sure you have sold those stocks, sold that car, wherever you are getting the money from — and that it is ready for closing almost a week ahead of closing.

Key takeaways

- Cash is king: a cash closing has fewer moving parts than a mortgage closing, and it is easier.

- But cash still has to be ready. If funds are still in stocks, the closing can be pushed into escrow or delayed because the funds have not seasoned or are not ready.

- Cash out of stocks or mutual funds into a standard bank account you can wire from or bring a check from.

- Have the money in your account for a good week before you need to pull it out — almost a week ahead of closing.

FAQ

Is a cash closing really easier than a mortgage closing?

Yes. A mortgage has a lot more things in it, so a cash closing is easier — but only if the funds are ready at the closing table.

What happens if my cash funds are not ready at closing?

The closing can be pushed into escrow or closed later, because the funds have not seasoned or are not ready. That is what happened when a buyer had not sold their stocks in time.

How early should my cash be ready?

A good week ahead of closing. Sell the stocks, the mutual funds, or wherever the money is coming from, and make sure it is sitting in a standard bank account you can wire from or bring a check from.

The Closing Series

1. Closing Table Intro

2. Show Me The Money

3. Buyer Side & Seller Side

4. Cash Is King — you are here

5. Closing Documents

6. Remote Closing Options

Watch me explain it

Here is an older video of me explaining the process. It might be older, but the info still rings true.

Watch on YouTube: https://www.youtube.com/watch?v=pK3Pmf7Z3ZU

Author: Steve Volkers, Associate Broker, Steve Volkers Group at Five Star Real Estate, Grand Rapids, MI — phone 616-717-2179, stevevolkersgroup.com