The Benefits of Buying Your Home with Cash

Do you ever think about what your dream home would be like – a place that is actually for you and your family?  Most people do, but you would have to be in the position to provide a reasonable cash offer for a home to actually be considered yours. Most buyers are able to become homeowners via a mortgage loan. There is only a small selection of people who are able to become true homeowners without paying monthly mortgage installments. If you have the option to purchase a home, cash down, due to saving up enough money over a long period of time, receive a financial inheritance, or build up equity with other properties or possessions, you should think about buying your home outright cash.

Purchasing your home with cash has some recognizable benefits while others may not be so obvious. The following is a list of benefits for you to consider if you are in a position to buy your home with cash.

There are two main benefits of buying your home with cash: elimination of mortgage payments and interest rates.

Mortgage Payments – When you have the option to buy your home with cash, this eliminates monthly mortgage payments and therefore, you obtain more economic freedom and have more monthly income to spend at your own free will. In addition, you don’t have to worry about foreclosure.

Interest Rates – When there´s an elimination of monthly mortgage payments, there’s also an elimination of interest rates. Interest rates on a mortgage add up to a large amount of money. Chances are if you pay only the minimum monthly payments on a mortgage until your house is paid in full, you end up paying almost the same or more than the actual price of your house. However, by paying cash upfront for your property, you do not have to worry about this additional cost.

There are also some other benefits when you purchase your home with cash that you may not be aware of.

Cash Buyers and Sellers – A homebuyer providing a cash offer to a seller is ideal because it makes the whole process a lot easier for both parties. As a cash home buyer, you are able to receive your home within a short amount of time without the burden of mortgage payments and your seller instantly receives cash upfront. It’s a win-win situation. From a seller’s standpoint, he doesn’t have to worry about unforeseen incidents or potential problems with a loan. As a cash home buyer, offering cash gives you a big advantage if another buyer is also interested in the same property or if you are looking to negotiate for a better price.

Save Money – When you are closing a deal on a mortgage, there are certain expenses involved such as loan fees, house inspection costs and a variety of closing costs that lenders usually require. On the other hand, if you buy a home with cash, you don’t have to worry about these extra costs and as a result, save a lot of money.

Quick Time Frame – The process takes a lot longer if you buy a property with a mortgage. You have to wait between 30 to 45 days to close the deal. However, when you purchase a property with cash, the process can take as little as a week to close the deal since you don’t have to wait for mortgage approval and there’s less paperwork involved.

Home Equity Loans – It’s a lot easier for you to get a home equity loan if you need one when you buy your home with cash than if you buy your home with a mortgage. You see when you apply for this type of loan, your bank reviews how much equity you have established on your home and decides how much to lend based on this information. If you are a first-time home buyer with a mortgage, it may be hard to get a substantial loan if you haven’t built up enough equity. However, you can show home equity if you buy a home in cash and therefore, borrow a substantial line of credit. This is suitable in case of an emergency or for home renovation.

Fluctuations in the Market – Fluctuations in the housing market affect homeowners with a mortgage. This means they would have to pay more than what their home is actually worth. On the other hand, cash homebuyers would not have to worry about this since these fluctuations don´t affect them.

In conclusion, keep these benefits in mind if you are planning on buying a house and are able to do so with cash rather than with a mortgage. Even though buying a home with cash may not always be the right decision for every homebuyer, it is important to recognize the positive qualities of an all-cash offer. For this reason, it is recommended to consult a professional realtor, financial advisor or a professional homebuyer to weigh out your options and to guide you throughout the process. At Professional Home Buyers we provide real estate services to both buyers and sellers. Whether you´re looking to buy your new home, sell your property or invest in real estate, we are here to help you along the way. Contact us today for a consultation or simply visit us online at

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