Are you thinking of buying a new home here in Wilmington? If you have the means, there’s nothing better than paying full cash to purchase a piece of real estate. Let’s take a look at a few benefits of buying property with cash instead of obtaining mortgage financing.
Forget Having to Deal with a Mortgage
If you’re like most home buyers, the prospect of not having to deal with a mortgage loan is the primary reason that you would want to buy a house or condo with cash. While mortgages are an excellent means for purchasing real estate, they can be expensive and a bit of a drag on your personal finances and credit until they are fully paid off. If you can afford to pay for a house in cash you will own it outright, and you will start building equity in your investment immediately.
Jump to the Front of the Bidding Line
If the property that you’re interested in purchasing has a number of offers on it, you can rest assured that yours will be near the front of the line if the seller knows you are paying cash. Most home sellers want to close their sale as quickly as possible, and cash buyers can close far more quickly than those that need to line up financing and deal with the necessary appraisals and paperwork. Plus, with a cash buyer there’s no chance that their financing will be declined – you can simply sign the paperwork, transfer the funds and the deal is closed.
Additional Leverage in Negotiations
Of course, the certainty that comes along with paying cash is worth something to the seller and this can be used as leverage in any negotiations. Cash buyers can almost always press for a discount on the listing price as the ease of the selling and closing process is somewhat irresistible.
Closing Costs Will Be Lower when Paying Cash
Finally it’s worth noting that you may end up saving a bit on your closing costs when you buy a home with cash. Since you’re not applying for a mortgage, you won’t be required to pay for the mortgage application fee as well as other fees attached to these loans. You won’t need to pay an attorney to deal with any mortgage documentation, which can cost anywhere from a few hundred dollars to over a thousand. You also won’t have to place your real estate taxes in an escrow account, nor will you be required to pay for an appraisal of the home to satisfy a lender.
There’s little doubt about it – if you have the means to buy your home in cash, you should absolutely do so. If you would like to discuss real estate opportunities here in Wilmington, the Keith Beatty Team is happy to advise you on your plans and to suggest properties that will suit your needs and budget. Contact us today at (910) 509-1924 or you can email us through our contact form by clicking here.