Any person who has ever thought of purchasing a home with cash recognizes that you still have to do your homework. For all the time and money you can save, you can still be taken for a ride if you do not do your research before the deal is done.
Since a cash buyer like you can skip the loan qualification process, the seller may like that your money can lead to a quicker sale. The added power this gives the cash buyer can be leveraged into requests for such things as a closing timeline, home repairs, warranty and more. You may even be able to get the seller to cover closing costs as a contingency of your cash deal.
Get a special broker
You may mistakenly overlook significant things, so make sure you have a real estate broker or attorney with cash home sale experience. This way, you can stay away from any possible legal issues.
Buying a home with cash tip No. 3 – Measure your cash spending budget
Do not purchase with cash if doing this fails to suit your financial situation. Make sure you have plenty of cash left over for emergency situations and other needs. If the property is an investment for future turnaround, consider whether you’ll be making more than what a mortgage would cost (assuming you’re eligible).
Do not make a cash pit
Before you move in, you will want to make sure there are no problems with the house by getting a house inspection. This may also help you avoid spending thousands of dollars in unexpected repairs later. You may also want to have the seller pay for the inspection, which is very easy if the seller has had the house on the market for a really long time.
Total cost of purchasing
There might be hidden costs, so make sure you have additional cash for those things. This can include paying for an appraisal, origination fees and more. You may even need a variety of additional cash to pay for the home improvement costs.
Purchasing a property with cash tip No. 6 – Understand what no mortgage means
There are a lot of tax benefits to having a mortgage, and a cash sale will just not do it. It will be easier to borrow credit later when you have a mortgage as well.
Get an appraisal right away
It is totally worth the couple of hundred dollars to pay for an appraisal to get completed, even if it does cost a few hundred dollars to do.
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