You can always spend cash for houses in various scenarios.
For instance, if you have saved enough money, gained an inheritance or won the lottery. On the other hand, if you have built up a lot of equity with another home, you can always purchase spend cash for a house effortlessly. There are some advantages of spending cash for Oregon house and they include the following.
No Mortgage Payments Necessary
If you’re financing a home purchase through a loan, you might be forced to pay for mortgage payments that will increase your monthly expenses considerably.
Well, one advantage of buying a house for cash is that you can save more money each month. If you’re on a limited income, you can have a little more money to spend each month rather than spending paying mortgage payments. Savings On Interest
Yes, interest rates might be quite low but the interest on mortgage loans will increase exponentially. Of course, you will not pay back the original amount, because, with the interest, the amount increases. Note that, with these mortgage plus interest payments, you might end up paying at least double the asking price of the house.
Therefore, if you’re paying your house for cash, you can avoid these unnecessary payments and save a little more money each month.
Home Sellers Love Cash Buyers
Sellers are more lenient to people who are buying a house for cash. That’s because it makes everything easier. Even better as the buyer, you have an edge because you can always negotiate a lower price because the seller is already intrigued by your offer.
Unlike other financing options that might result in issues such as loan funding conundrums as well other contingencies, sellers prefer cash buyers because the transactions are fast and to the point.
On the other hand, sellers who are looking to get their homes out of the market very fast will always be lenient to cash transactions.
Savings On Closing Costs
There are many costs involved when purchasing a home with other financing options such as a mortgage. For instance, you might have to pay a loan origination fee, property appraisal fees and numerous other costs require by financial lenders.
If you take all these costs into account, you might have to spend thousands before you can actually own the home. Well, if you’re paying the house for cash up front, you can save a lot of money on these closing costs.
Become A Homeowner Faster
Let’s say you have to move into a new house within a week or so. If you’re buying the new home using a mortgage, you will take at least 2 months before you can actually own the home.
Finalizing the mortgage transactions from the lenders takes around that time. Therefore, it would be quite inconveniencing for you. Well, thanks to cash payments, you can be a homeowner within a week.
In most cases, there is no need to deal with the realtor when you’re buying a home with cash. All you need to do is transfer the money to the owner’s account and you’re a new homeowner.
Easy Approvals For Home Equity Loans
If you’re planning to apply for a home equity loan, the financial lender determines the amount of money you can borrow depending on the equity built on your phone. People who financed their home purchase using a mortgage might have a hard time getting an approval on a home equity loan if they need one immediately.
If you paid the house by cash, you have the allowance of getting a home equity loan up to 80% of the value of the home. If you need the money for home improvements or an emergency, you should get the approval without any hassles.
No Effect From Real Estate Fluctuations
With the real estate market being volatile, many homeowners, especially those with mortgage payments are quite disgruntled. That means you might have to pay much more for the house than the actual value.
If you have purchased your home for cash, you can always sit down and wait for the fluctuations to settle down after a while.
Therefore, if you’re debating on the right financing method for your home purchase, you can always rely on cash payments.
20 Apr 2017