Is it Better to Get Cash for Houses?
Finding the house of your dreams can be a bit of a Sherlock Holmes situation – especially when buying it. In the house buying process, the buyer has two choices: cash or mortgage. Although both are relevant, the process and benefits that each of them has are completely distinct from each other.
For a buyer who is financially capable and has a fix budget, paying cash is the best option. Here are some of the reasons why it is better to get cash for houses:
Elimination of Unnecessary Fees
One of the key benefits of paying cash is there are no mortgage origination fees, appraisal and inspection fees that are charged by the middle man or the bank lenders. This also saves both the buyer and seller’s time due to a direct home buying process. The house can be bought immediately without the need of the lender’s approval.
Cash is Attractive
Selling houses fast is the number one goal of a seller. The quicker to close the deal, the better. This is why when paying cash, sellers continuously line upbecause they don’t have to worry about pre-approval from bank lenders and can be assured that the deal would not be denied. With a direct home buying process, a cash home purchase can close a deal faster than mortgage offers – which appeals more to sellers.
No More Interest Rates
Mortgage loans would have an interest every month and overall adds up to a huge amount of money. Paying cash saves more because it does not have interest rates at all. This also terminates the chances of paying twice the asking price of the home.
Closing Deals are Faster
If the buyer is on a time crunch, paying cash is the better than buying a home with a mortgage. In the home buying process with mortgage loans, the buyer has to wait between 30 to 45 days for the paperwork to be finalized in order to close the deal. This also indicates that the seller has no guarantee whether the loan would be approved or not. Unlike buying with cash, the transaction can just be within a week.
Owning the Home
Due to the easy and straightforward process when it comes to paying cash, this gives the buyer an assurance that the house is his (and not the lender’s). There is no fear or anxiety of monthly payments that could possibly impact the buyer’s credit negatively. This also gives the buyer the achievement of becoming a home owner without any worries of later payments and interests.
One of the advantages of paying cash is that equity will be available when faced with financial crisis. Unlike with loan offers, the buyer has the ability to reach the total equity of his home when an emergency occurs.
Less Fluctuation Market Stress
Paying cash gives you the sense of security and ownership which results to little to no stress regarding the market value of the home. The owner can make outright decisions regarding what to do with the property and decide the value of it in the long run. Options can be renting the home out or selling it in a few years. This prevents worries about monthly loan payments and keeps your mental health intact.
The bottom line is whether you pay cash or get a mortgage, the buyer must always assess first what works better financially. But when it comes to selling the house fast, the best option is to get cash. Luckily for you, we buy houses in cash. If you are interested, head on over to SnapCashOffers.com. Overall, whatever is flexible to the buyer must be the option to be chosen.