The real estate transaction has many parts, for example, find property, real estate agents, escrow, loan, inspection, offer/acceptance of contract, inspections, etc. What do you think is the most important part of the real estate transaction?
I believe it is the loan, since the majority of people get a mortgage. Unless you pay 100% cash, then it is 3.5 to 25% down, and get a mortgage. I can even pinpoint it further in the loan process, it is your FICO score. You need 740 or higher to get the best rates.
To remind myself that FICO is the most important aspect of financing, in future, if I get a dog, his name would be FICO ( play on word FIDO).
I have higher than a 740 FICO score (just under 800), yet the bank claimed I didn't qualify for a loan, due to the fact that I don't have a W2 anymore. My wife has a better score (just over 800) and they were basically negating my "income" because it was not a W2 income, and my wife's part time job wasn't enough to qualify... we bought the house cash after the bank dragged us along (making me get letters for amounts of money I deposited in a bank account that at the end of the day didn't matter to the mortgage).
I don't have an opinion on what is the most important thing in a transaction, as they are All different... however my experience shows me my credit score meant nothing (hell my income and how much money I actually had meant nothing to the mortgage broker)!
You had an unfortunate bad experience. All cash is better than financing, but unless you are rich, you will need a loan/mortgage. Even if you are rich like TRUMP, he finances his hotels and buildings. It smart to finance due to leverage, and writing off the interest expense.
FICO is a history of your financial responsibility. Cash can be up and down with lots of variables.
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