The power couple that beats all-cash offers
Home sellers and their agents love all-cash offers. They know that when the buyer makes an offer with all of the money they need for the purchase price in hand, they have little to worry about and lots of certainty that the deal will close. No muss, no fuss.
In fact, in November of 2024, a quarter of all existing-home sales, 25%, were made entirely with cash. This presents a significant hurdle for the other 75% of buyers who must secure financing and get a mortgage through a lender. That’s where Same Day Mortgage and PowerBid Approval come in.
These two products from Rate are a power couple that work together to help you close the deal on the home you want. You can get started working with this power couple by applying today or find out how they work together to compete with cash.
Why cash is thought to be king in home sales
So why is cash so favored when buying a home? Let’s start by thinking of it from the seller’s perspective. They are putting their home up for sale and likely trying to secure a new home at the same time. They’d like to line up the dates of the sale of their old home and purchase of their new place as close as possible to make the move seamlessly.
Also, their home is likely the single biggest investment they’ve made in their lives. Selling a home is incredibly stressful – you want to make the best choice for yourself and your family while avoiding as many headaches as possible along the way.
In order to achieve those two main goals, as well as many others, sellers above all want certainty. Certainty that the deal won’t fall through. Certainty that the closing will take place when they need it to so they can line up their move dates.
Cash provides that certainty.
Buyers who can pay in cash, many of whom are paying with the proceeds of a previous home sale, don’t need to get their financing approved by a lender. They also have flexibility on when they can close because, again, they’re not waiting to get approved by a lender. That means they can close quickly if that helps the seller.
Cash buyers can also have stronger negotiating power, as sellers may be willing to accept a lower price in exchange for the certainty and speed of a cash sale.
Teaming up to compete with cash
So to sum up: sellers like cash because they feel certain that the sale will go through and they can close on it quickly. It just so happens that Rate has two products that can help with both.
How PowerBid provides certainty
A pre-approval letter is one of the first things you should get when shopping for a home, because it lets sellers know that you’re likely to be approved for a loan. But not all pre-approvals are the same.
With our PowerBid Approval, you can gain a competitive edge by securing a fully underwritten credit pre-approval letter that shows you’re a qualified loan candidate. By taking the extra step of underwriting your credit pre-approval, sellers will have extra assurance in the strength of your offer.
PowerBid can help your offer rival the strength of cash offers. In a competitive housing market crowded with cash buyers, PowerBid ensures that your offer carries similar credibility and reliability, giving sellers confidence that the deal will close smoothly and on time.
Additionally, you can lock your rate for up to 90 days, providing you with stability while reinforcing your financial readiness to sellers. By eliminating uncertainties, PowerBid can give sellers peace of mind and helps make your offer stand out in any market.
How Same Day Mortgage gives you speed
Over the last few years, a lack of homes for sale has created a fast-moving housing market, one where time is often the deciding factor between winning and losing your dream home. That’s why we created Same Day Mortgage — to give you the speed you need to compete and win.
While traditional mortgages can take 45 days or even longer to close, Same Day Mortgage streamlines the process, offering loan approval in as little as one day, and closing in as few as 10 days*.
Though your offer may be competitive in terms of price or waived contingencies, the one thing that can set you apart is how quickly you can close. Other lenders might take weeks just to approve your application, but Same Day Mortgage keeps you ahead of the game by eliminating unnecessary delays. This allows you to compete with cash by letting you close on your seller’s schedule.
Create an offer that can compete with cash
By combining PowerBid Approval and Same Day Mortgage, you’ll have an advantage against all-cash buyer by offering sellers the one thing they value most: certainty. PowerBid can help your offer appear as reliable as cash, assuring sellers that financing won’t be an issue. And Same Day Mortgage lets you deliver speed with lightning-fast approvals and closings. Start your application now and together, these tools will show sellers you’re a serious, ready-to-close buyer.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Rate for current rates. Restrictions apply.
* Rate’s Same Day Mortgage promotion offers qualified customers who provide certain required financial information/documentation to Rate within 24 hours of locking a rate on a mortgage loan the opportunity to receive a loan approval within 1 business day of timely submission of documentation and does not suggest that the borrower will receive funding on the same day as their application submission. For purposes of this offer, documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day. Rate cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. Rate reserves the right to revoke this approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation. Read and understand your Loan Commitment before waiving any mortgage contingencies. Borrower documentation and Intent to Proceed must be signed within 24 business hours of receipt. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Self-employed borrowers are not eligible. Not all borrowers will be approved. Borrower's interest rate will depend upon the specific characteristics of borrower's loan transaction, credit profile and other criteria. Not available in all states. Restrictions apply. Visit rate.com/same-day-mortgage for terms and conditions.
Eligible borrowers must qualify for a "Clear to Close Loan Commitment" ("CTC”). Rate cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. CTC is subject to certain underwriting conditions, including clear title and no loss of appraisal waiver, amongst others. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Property must be eligible for an Appraisal Waiver and borrower must opt in to AccountChek for automated income and asset verification. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Restrictions apply.