Getting a home loan? Contrary to popular belief, a lot of new buyers assume that they need a mortgage to purchase their first house. What they do not know is that it is entirely possible to use cash to buy your home.

🏠 Getting a Home Loan

US currency and a male signing a contract for getting home loanGetting a home loan is a process. Deciding which option is best for you, cash or finance in buying a house, it can be a difficult decision and you must take your time to make the right choice.

Determining the right financing option for your real estate purchase is just as vital as making sure that your new property will be an excellent long-term investment.

While there are various mortgage options to suit different individuals, not all are suitable for your financial circumstances. Before getting a home loan to consider all of your options.

The decision that you make could impact your future spending for years, so you should give it the seriousness that it deserves.

🏦 Financing it

Getting Home Loan: Mortgage papersThere are several reasons why you should be getting home loan as opposed to paying cash even if you can still afford to purchase your house in cash.

Paying cash may not be advisable if you have to sink all your savings into the purchase or if you have to liquidate an asset to do it.

You can earn more if you choose to keep your cash invested in a stock or bond market rather than spending it all at once because rates today have become lower.

Benefits of mortgage financing include:

  • You can multiply your investment faster
  • Mortgage interests can get subtracted from one’s taxes
  • You stand to make a higher rate of return on the initial investment

💰 Paying cash for a house

Young woman holding a lot of Cash and choosing than Getting Home LoanThere are several reasons why one would choose to spend some money on a home.

Cash buyers tend to have the upper hand in bidding wars compared to buyers that require financing in competitive markets.

More benefits of paying cash for a house include:

Money makes you a much more attractive buyer because you are likely to take the sales process more seriously.

Cash buyers are more appealing to sellers for obvious reasons. They also stand to enjoy better deals and discounts as a result.

Since buyers that use cash commonly have the money on hand, they never have to worry or endure about trying to secure a mortgage.

Where there are no mortgages, cash buyers never have to lose sleep over defaulted payments.

Cash is generally a good idea for investors and buyers that have a weak or shaky credit history.

Getting a home loan takes time. Avoiding case available allows you to pounce on deals wen you see them. often times sellers are attracted to the certainty of an all case purchase.

Related Reading

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Should I go with a Mortgage Broker or Bank – by Conor MacEvilly

12 Mortgage mistakes to Avoid When Buying a Home – by Kyle Hiscock

What is a VA Loan – Veteran’s Guide to Homeownership – by Bill Gassett