The Advantages Of Buying A Home With Cash

    From the moment you leave college and get that first job, one of the things that keeps on lingering in your mind is when you will manage to save up and buy your own home. Well, planning to buy one is a simple thing to do but buying it is where the real challenges begin. In some cases, it is unrealistic to wait for you to save up enough money to buy a house, especially when you look at the massive prices attached to the fabulous homes, and this is why people look at other ways of financing their purchase. Mortgages and bank loans can help you buy a house if you do not have the whole amount but is that the best thing for you to do?

    If you have a way of getting cash, it is advisable to buy the home and avoid getting involved with lending institutions due to the apparent disadvantages. Here are some of the benefits of buying a house in cash;

    Sellers Love Such Buyers

    People selling homes do not wish to get entangled with people who have problems with their financing because things could go sour at the end of it all and they might not get the amount they wanted in good time. This is why sellers love buyers who make cash purchases. Everything becomes easier on both sides as the seller can start to process the transfer of ownership as soon as the deal commences and within no time, everything will be sealed and done. Sellers like cash buyers because they do not have to worry about last minute cancellations such as those where the financing institution refuses to give someone the money they had borrowed. Most of these sellers are just interested in closing things up as soon as possible and love people with cash since that is their most attractive chance of selling that home and getting on with their normal day to day activities within no time.


    It is well known that the process of buying a home is complicated and one part that adds to these complications is the financing part. The process of applying for a mortgage has never been easy even if you have the assets required and a clean financial record. You are required to fill in multiple forms, prove several things about your business or job and even convince the bank that you are creditworthy. Why go through all these processes when you could buy a home without having to struggle? If you can buy a house with cash, you will save yourself a lot of struggles and could even do it without involving a real estate agent. If you know someone selling a home that you like, all you need to do is to approach them, bargain on the price and start processing the necessary paperwork.

    It Is Cheaper

    From a financial perspective, it is much better to buy a house using cash than most of the other forms of payments. You can look at it from two angles with the first one being the negotiation phase. If you look at most of the houses listed for sale by real estate companies, you will see that they have quoted a lower price for people who wish to buy in cash and a higher amount split into the down payment and installments for people who want to pay for the home over an extended time. At the end of it all, the companies selling the home are the ones who gain since they can force you to pay much more for the house if you opt to pay for it in a couple of years. When you meet a local seller, and you have cash, it is easier to negotiate for the price to lowered since they understand that cash buyers are very few and they won’t be very willing to let you walk away.

    On the other hand, money lending institutions will charge you a lot in interests if you decide to borrow from them. They might give you the money you need, but if you do the mathematics, you will realize that you end up paying much more than you would.

    No Restrictions

    One of the main disadvantages of buying a home through a mortgage or loan is that you are not entirely free to do what you wish with the house. Technically, the home is not entirely yours until you have completed all your installment payments. In case of any issue arising with the payments, the banks or lending institutions can easily reclaim the home and render you homeless. Why should you live with no peace of mind when you could do it by just buying a home in cash? When you buy a house using cash, it becomes wholly yours the moment all the paperwork has been completed, and you could even sell it the next day if you wish. You will move around with the peace of mind that you are not indebted to anyone, and even if you lose your job, you will still have a place to shelter you. Furthermore, your monthly income will be intact since you won’t be deducted any money by a money lending institution.

    Lower Closing Costs

    It has been seen that buying a home with a mortgage is not the best way to do owing to the complicated procedures surrounding it. Buying with cash means that your closing costs end up being significantly low. You do not need to pay the bank attorney for overseeing your mortgage process. You won’t be required to pay the mortgage application fee or an additional amount for appraisal by the lending institution. In some cases, you might not even need an appraisal at all. You won’t need the title insurance fee and any other amount that is required to close the deal.

    The advantages of buying a home in cash have been highlighted, and you should highly consider doing it if you have somewhere to get the entire amount. You will have the peace of mind you need and won’t be worrying over anything as you enjoy the luxury and comfort of living in your own home.