Did you know that US home sales in cash are at an all-time low? As more people lend to buy property, a hard currency sale is a rare thing. But do you know the many advantages of buying with cash?
If you have the money in the bank, it makes a lot more sense. Read on as we discuss the advantages of cash home buying.
1. Cash Home Buying Is Attractive to Sellers
Cash buying is much faster than selling to someone waiting for mortgage approval. There is no long delay as the bank assesses the property and deals with background checks from the buyer. In addition, as a bank is not there to pull out of the loan and ruin the deal, a cash buyer is a safer offer.
This gives you some leverage when buying. You may be able to push for a lower price. You could also gain an advantage over other sellers in the market.
2. No Interest
Without a mortgage process in place, you do not need to pay the costs associated with it. The biggest of these is the interest you would pay on your loan. Not having a mortgage can also be a great advantage if you are buying a second home or rental property.
3. You Own the Home
When you have a home with a mortgage, it technically belongs to the bank. If you run into hard times and default on your loan, then they take it from you to recoup costs. You can end up losing everything, including your house.
When you have no mortgage, you own that home fully. Whatever happens in life, you will always have a roof over the head of yourself and your family. This brings peace of mind that is unrivaled anywhere else.
4. Fast and Simple Closing
One of the essential pieces of cash home buying information is that you can have the deal sealed within a week or two. This is in contrast to the huge wait for people to get a mortgage approval, which can reach over a month. You do not have to wait for the underwriter, loan processing, or approval.
In addition, you do not need the huge amount of paperwork required to close. As no one needs to send documentation to their bank regarding the loan, the process is quick and easy.
5. Lower Costs
Cash home buyers will also save money on the fees associated with closing. Mortgage lenders will charge you for lender and application fees. They may also require to buy mortgage insurances and title insurance policies.
All of this adds up to a sizable amount. With cash, you can cut out these unnecessary expenses making huge savings.
Understanding Cash Home Buying
Now you know the benefits of cash home buying, you can see that there is very little downside. You pay less money over the long term and get a faster and cheaper closing. In addition, you also get an advantage over other buyers.
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