When you decide to buy a house, you can buy it either with a loan or cash. While both options have their advantages, there are some fantastic benefits you stand to enjoy if you use cash buying a house. Perhaps you have saved for a long time, perhaps you have sold another property, or received a considerable sum of money through inheritance, won a cash prize like a lottery, or you may have come into a lump sum in another way. Regardless of the source of your funds, you may wonder if it is a wise decision and you get advantages from cash buying a house.
Below are some of the advantages of buying a house with cash:
You Stand a Better Chance in a Competitive Market
Sometimes the property market can get quite competitive, especially when there are fewer homes and more buyers. Also, properties in some areas tend to attract more buyers because they are in are popular areas and have good amenities or for other reasons. If you are using cash buying a house, you will be more appealing to sellers because you have ready cash and do not have to wait for lenders to process your mortgage. Therefore, you could manage to get the home you want even when many buyers make offers and have to wait for loans from their lenders.
You can close the home buying process faster
One significant advantage you get from cash buying a house is that you can complete the process more quickly than when you have to rely on a mortgage or any other loan. Typically, you have to wait between 30 and 45 days to finalize the paperwork on the deal. However, if you are using cash, you can get everything done in a week.
Sellers prefer closing the deal faster and appreciate selling to cash buyers like Home Flippers. The company buys homes as-is with cash, thus saving sellers the hassle of looking for buyers or going through a lengthy sale process.
Using cash buying a house saves interest on loans
No matter how low interest rates drop, the amount of interest that home buyers pay on a mortgage or home loans still adds up to a significant amount. Sometimes, borrowers pay as much as twice the value of the home by the time they complete paying off the full mortgage or home loan. If you could get your hand on funds another way, buy your house with cash, and not use a mortgage, you can save so much.
You get outright home ownership
If you get a mortgage to buy a house, you do not get outright property ownership because the title document is the collateral for the loan. However, when you are using cash buying a house, you have the right to the property and owe nothing against it. This means you are at less risk of losing your house if you get into some financial challenges. The house’s value is your equity.
As you can see, the benefits gained from cash buying a house include saving on interest, closing the purchase faster and getting a better chance to buy the property you want. Also, you get outright ownership of the house with little risk of losing it if you face financial challenges.