Cash vs. Conventional: How the transaction process changes
In short, cash deals close faster. Conventional deals have a few more hoops to jump through. FHA and VA loans bring a few more. The transaction process looks different with every single one.
As a transaction coordinator, I work across all financing types — so I know exactly what changes, what stays the same, and what trips agents up in each scenario.
What to expect with different loan financing types:
Cash Transactions = no appraisal, no lender timeline, faster close — but still needs title, EMD, inspections, documents, utility transfer, occupancy tracking
Conventional Loans = appraisal required, lender’s timeline drives everything, more documentation & underwriting requirements
FHA/VA Loans: additional paperwork requirements, property condition requirements, specific appraisal standards
What the TC tracks differently for each type:
Cash: title, EMD, inspections, documents, utility transfer, occupancy tracking - and getting it all done before closing!
Conventional: all of the above + appraisal timelines, lender underwriting, CD release, and TRID deadlines
FHA/VA: potentially appraisal repairs and reinspection, government approvals
Pushing a closing because of unexpected loan issues is one of my pet peeves. Prepare yourself with the different loans by fighting against these
Top TWO common curveballs by loan type:
Cash: title issues and LLC documentation - with quick closing timelines, usually title is the thing holding us up because we have less time to clear things before closing.
Conventional: HOAs and Employment Verification - HOA status letters and employment are always the thing lenders are waiting on in the final hour, buyers and sellers who are prepared to jump in and help when needed are going to be the most successful
FHA/VA: government approval waiting times and repairs for appraisals - usually, once we get past inspection everyone thinks the fear of needing repairs is past. Wrong. These loan types have more strict guidelines, and last minute repairs require the appraiser to come back out to verify, tacking on precious days to the closing timeline.
Working a cash, conventional, or government backed loan? Either way, a TC keeps every detail on track so nothing falls through the cracks.