A cash offer means that you are able to pay for the house in cash without financing. You can always decide to GET financing, but you must be able to prove you have the selling price in cash, in other words, not contingent on you getting financing.

Hey Aziz,
I better win a "best answer" for this.

First off, I am not a lawyer, so you would need to consult a lawyer to interpret the contract. I am a broker for my company. This is what we allow.

You CAN write a "100% cash offer" and then decide to get financing.

How?
1) You have to show that you COULD in theory buy it with all cash. Proof of cash in a checking account or liquid stocks should suffice.
2) The contract has NO finance contingencies (no appraisal contingencies)
3) Section 13 of the VA contract allows you to change the type of financing at any time, as long as you don't delay the closing or cost the seller even a dime.

So if you initially said all CASH, but some lender offers you a great deal, you can get the loan. At closing the seller won't care if you bring Cash Cash or Bank Cash. But if you mess up, they will hold you in DEFAULT.

What you do NOT want to do is pretend that you can buy it with cash and then get a loan.

Best of luck

Frank- Broker FranklyRealty.com
http://Blog.FranklyRealty.com

Also, cash implies that the buyer does not require an Appraisal, if in fact no bank is imvolved.

I will totally disagree with Kallen... a cash offer means that you are not using any type of financing, you have the assets in your possesion to buy the property outright on settlement day. Since you your offer was probably presented on the Regional Contract used in Northern Virginia, you could be on thin ice if you misrepresent your ability to complete the offer without financing, just as Cindy stated. Go back and get clarification before making an offer.

Cash offer has nothing to do with your financial situation. To the seller, it merely means that they will not have to carry a mortgage back for you or leave any of their money in the deal. They are getting fully "Cashed out" whether you bring in your own money, or borrow it from a new lender.

you'll likely have to have proof of funds. so, if you're buying a $100K home and you have $500K in a checking account, but you'd prefer to get financing... then, its probably ok. but, getting financing today is difficult, even for solid buyers. don't make a promise you can't keep. again - talk to your agent, they understand your situation better than we do.

Yes you can make a cash offer you need to make a contract change. http://www.lynn911.com

I would ask your broker to explain what they mean. Since you are represented by an agent I can't give you advise on your purchase but you could be walking on a slippery slope if you misrepresent how you intend to complete the purchase of the property to a seller.

Aziz,
A cash offer is where you know that you have the financial means to close on the transaction- absolutely.
You either have a letter of credit from your lender, or documentation that whatever property you choose that you can get financing for it.

Your offer would not be "contingent" on you getting financing. This makes it very strong to the Seller, and puts you in a very good bargaining position. You will need though to provide your agent with documentation that you, in fact, have access to funds to close which he/she would present with your offer.

I have done this many times - with clients and personally. When you may be in a competitive situation with other offers, a Seller may be more inclined to accept your offer rather than one "contingent" on the buyer getting financing, even if your offer is for less money (in some cases)

All the Best to you!