<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>tempnow987</author><text>Not true at all. If you are self employed getting underwritten can be a nightmare.&lt;p&gt;We had savings galore but they wouldn&amp;#x27;t count it for a variety of reasons (withdrawn from biz account in last 90 days, biz account showed slight decrease because of covid), then calcs with old place and new together are hard.&lt;p&gt;Sometimes if you just leverage equity in old place you will be moving from + hard money + savings, you can do a cash offer, then sell off old place  (we had a preemptive offer 4 days in well over asking - bay area).&lt;p&gt;Now you only have to be underwritten for one property (before selling old property they included both in calculations which made it hard). We got a 3% rate, then used that to settle up everything back to the way it was.&lt;p&gt;California also have firms like Reali (&lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;reali.com&amp;#x2F;how-to-guide-cash-offer&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;reali.com&amp;#x2F;how-to-guide-cash-offer&amp;#x2F;&lt;/a&gt;) that do a cash offer on new place, then you sell old place and buy from them.&lt;p&gt;This might be unique to the insanity of the CA market in last 2 years. I think it is cooling down thankfully?</text><parent_chain><item><author>conductr</author><text>The concept of the cash buyer is a bit of a farse as well. What usually takes place is a cash offer. They just need to proof of funds to do this. But then, they get financing to close. Nobody in their right mind is putting that sum of cash in real estate when they could borrow at 2% or whatever it was before the recent run up. The mortgage interest even has favorable tax treatment so it’s effectively much less. Oh and the actual cash can also grow tax deferred. I really don’t understand why you’d actually put a large sum into a house when interest rates were as low as they were.</text></item><item><author>brewdad</author><text>We&amp;#x27;ll find out over the next 6-12 months. At some point, a lot of home buyers started shopping by payment without regard to total price. With interest rates near their lowest in anyone&amp;#x27;s lifetimes that was workable.&lt;p&gt;With interest rates rising, as buyers who haven&amp;#x27;t locked in lower rates begin looking at the current payments on offer, they will have to look at lower priced homes or drop out of the market. If this boom has been driven primarily by buyers flush with cash, foreign or domestic, then prices should remain high. Payments are largely irrelevant to cash buyers. Any buyer using debt will be forced into lowering their ceiling of properties they can afford. Home prices should then fall.</text></item><item><author>melissalobos</author><text>Isn&amp;#x27;t this one of those &amp;quot;If everyone is crazy, you&amp;#x27;re crazy&amp;quot; situations? If every house is overvalued by some metric, then maybe the metric is wrong. People&amp;#x27;s perceptions of value are a large part of the actual value(meaning what someone would really pay) for things like housing that should depreciate over time.</text></item></parent_chain></comment><story><title>Homes in 97% of U.S. cities are overvalued, Moody&apos;s says</title><url>https://www.cbsnews.com/news/home-prices-mortgage-rates-moodys-mark-zandi/</url></story>
<instructions>Your goal is to analyze the following comment and estimate how highly it will be upvoted by the Hacker News community.</instructions><comment><author>digitaltrees</author><text>Actually there a lot on business owners that can’t get mortgages because they don’t don’t have stable income reported on a w2. It can often be easier to buy cash and refinance than try to get a purchase mortgage</text><parent_chain><item><author>conductr</author><text>The concept of the cash buyer is a bit of a farse as well. What usually takes place is a cash offer. They just need to proof of funds to do this. But then, they get financing to close. Nobody in their right mind is putting that sum of cash in real estate when they could borrow at 2% or whatever it was before the recent run up. The mortgage interest even has favorable tax treatment so it’s effectively much less. Oh and the actual cash can also grow tax deferred. I really don’t understand why you’d actually put a large sum into a house when interest rates were as low as they were.</text></item><item><author>brewdad</author><text>We&amp;#x27;ll find out over the next 6-12 months. At some point, a lot of home buyers started shopping by payment without regard to total price. With interest rates near their lowest in anyone&amp;#x27;s lifetimes that was workable.&lt;p&gt;With interest rates rising, as buyers who haven&amp;#x27;t locked in lower rates begin looking at the current payments on offer, they will have to look at lower priced homes or drop out of the market. If this boom has been driven primarily by buyers flush with cash, foreign or domestic, then prices should remain high. Payments are largely irrelevant to cash buyers. Any buyer using debt will be forced into lowering their ceiling of properties they can afford. Home prices should then fall.</text></item><item><author>melissalobos</author><text>Isn&amp;#x27;t this one of those &amp;quot;If everyone is crazy, you&amp;#x27;re crazy&amp;quot; situations? If every house is overvalued by some metric, then maybe the metric is wrong. People&amp;#x27;s perceptions of value are a large part of the actual value(meaning what someone would really pay) for things like housing that should depreciate over time.</text></item></parent_chain></comment><story><title>Homes in 97% of U.S. cities are overvalued, Moody&apos;s says</title><url>https://www.cbsnews.com/news/home-prices-mortgage-rates-moodys-mark-zandi/</url></story>