You may find yourself in a situation where buying a home with cash is an option. Buying a home with cash can have several advantages such as lack of mortgage payments and interest rates. It therefore saves various costs and fees, has streamlined closings and immediate equity. If you doubted if buying a home with cash is good or not, here are some of the benefits of buying a home in cash.
- Easier to win bidding wars
Most Sellers prefer cash buyers because the process gets eased on their side. If you are in a bidding war with another buyer that requires financing, you will have the upper hand. This is because deals that have financial contingencies have high chances of falling through if the loan is not approved.
- Quick closings
Due to lack delays caused by mortgage approval, the closing process is quick and streamline. The absence of this step also reduces paperwork and makes the transaction time short. This allows to close much faster.
- Potential for better price
Many sellers are more comfortable with cash buyers and can be willing to negotiate a better price. This especially happens if the seller has a time frame to meet or has the eagerness to sell. This will help you save money on the purchase price as a cash buyer.
- Savings on interests
Mortgage interests are usually higher than interest from a market or savings account which accumulates over time to be a large amount. You save yourself from such additional digitech costs when you buy a home with cash. You also get instant home equity.
- Lower closing costs
Elimination of the mortgage expenses reduces the closing costs. Some of the mortgage expenses you avoid when you buy a home with cash include: credit report, land survey, appraisal, underwriting and points fees.
You can evidently agree that buying a home with cash helps save money in different ways. Moreover, you can get added leverage in offer negotiations.