Nicole Friedman at The Wall Street Journal writes about new startups that are trying to speed up the mortgage process…(The Wall Street Journal)
- Cash is king. In the current housing market having an all cash offer is as good as gold and buyers who need financing are losing out to those who don’t.
- Level the playing field. These new startups are trying to level the playing field. “Some of these companies front buyers the cash to buy their homes outright, while others buy houses directly on a buyer’s behalf and then sell them to the buyer.” These programs seem to appeal to homeowners who need to buy a house before selling their current one.
- Just one problem. “If a home buyer’s financing falls through, the company could end up owning the house and needing to resell it.”
In all honesty, I don’t really understand the long-term prospects. It is not going to stay a seller’s market forever. Sure, cash buyers might always be attractive, but if it’s not necessary why would a buyer want to go through the process of borrowing money twice?
🔥 TYLER’S HOT TAKE: A few months ago Silicon Valley was pretending it invented the radio, now they are pretending they invented mortgages.