CASH IS KING
We have all heard the old adage 'cash is king'. It certainly has been the case in this competitive real estate market. In fact, 34.5% of sales went to the king of offers, the cash buyer, in Feb. 2024.
How to WIN
NAF CASH
NAF Cash is a true cash buying program that allows our qualified buyers to be cash buyers.
Buyers Tasks
Applicants first apply to be Pre Approved, then upgrade their Pre Approval letter to a fully underwritten Pre Approval. What does that entail?
Step 1: Apply Online - Click 'Free Pre Approval' in the top right of this screen.
Step 2: Submit your documentation via the secure portal.
Step 3: A New American Funding Underwriter will review your file, and if you are qualified, issue a fully underwritten Pre Approval.
Step 4: The NAF Cash team will review your approved loan, and if applicable, issue the NAF Cash Pre Approval letter.
In this competitive market, receiving a fully underwritten Pre Approval is always a net positive. It helps relieve stress from buyers knowing that they have done the heavy lifting up front in providing paperwork and securing their fully underwritten Pre Approval.
Further, it sets them up for success in multiple offer situations as they may be the only buyers who did their due diligence having gone through the underwriting process up front.
Clients I spoke with recently said when they listed the home for sale, the reason they chose the buyers they did was the fully underwritten Pre Approval submitted with the offer. This made them, as home sellers, feel more confident they were selecting a qualified buyer who would be able to close.
This program is open to first time home buyers as well as existing home owners looking to purchase their next primary residence. For existing homeowners, we do NOT have to count what we call the 'departing residence' in the debt to income ratios. That means you can qualify to buy your next home FIRST, without needing to count both properties in your debt to income ratio. NAF Cash is a huge opportunity for home sellers to also be buyers and not have to do everything concurrently or with a home sale contingency.
Realtors Task
We offer Realtor NAF Cash certifications daily. On June 13th, we are hosting another great, in person, Realtor NAF Cash Certification Luncheon. These are always well attended and the feedback is fabulous. Reserve your spot here: https://www.tickettailor.com/.../newamericanfunding/1176788
Okay tell me, what are the fees?
Each state has a different NAF Cash fee depending on the actual costs incurred to sell a home. In Massachusetts, for example, the fee for NAF Cash is 2%. Costs incurred include State Tax Stamps charged to the seller by the state of Massachusetts when a home sells, Attorney Fees, Home Owner's Insurance, AVM - Automated Valuation model and depending on where the value lands, sometimes a Desktop Appraisal Fee, and lastly, an Owner's Title Insurance policy. There is a rent back fee as well that the Buyers will learn more about. The goal is to get the property into the hands of the buyer quickly!
If a buyer was to utilize NAF Cash to get an accepted offer at $700,000, the 2% service fee would be $14,000. The buyers would purchase the home from NAF Cash for $714,000. In some cases, being a cash buyer can secure you a better deal. In this market, NAF Cash provides an option for buyers to win the home where they otherwise may not be able to.
What else?
There are more details that go into this program and it would be my pleasure to share them with you. Contact me today to learn more. E-mail me nicole.kittredge@nafinc.com and let's set up a time to connect to review how NAF Cash may be of service to you. NAF Cash is also expanding, and we cannot wait to share more with you on that!
Nicole's Closing Advice
In this competitive market anything you can do to stand out from other buyers you should take advantage of. Ask your Lender if they offer free, up front Underwriting. Then ask your Lender if they have a true cash buying program like NAF Cash. Working with a mortgage company that is able to be nimble in this market and create opportunities to get more buyers into homes is life changing.
