According to the National Association of Realtors, one out of every three home purchases are made completely with cash. If you are in a financial position to buy your next home in Amarillo, Texas with cash, it is something to seriously consider. There are certain advantages that buying a home with cash offers. Most sellers prefer when someone buys their home with cash, and those buying a home with cash end up saving money. Buying a home with cash offers you financial security and is easier than buying with a mortgage.
Most sellers prefer when someone buys their home with cash
Think about the home buying process from a seller’s perspective. When a buyer offers a cash payment, there are many benefits for both parties. You won’t need to go through the mortgage lender’s approval process and there is far less paperwork to deal with. There is almost no uncertainty that the cash sale will go through, either. If a seller is given two similar offers from a cash buyer and a mortgage buyer, the choice will be simple from this perspective.
Sellers are often willing to offer discounts to those who want to pay cash. The ability to sell quickly typically makes sellers willing to accept a lower offer, instead of waiting months to get an acceptable offer from a mortgage buyer.
Buying a home with cash can save money
If you need a mortgage to buy a home in Amarillo, you are going to have higher closing costs. There will be mortgage application fees, appraisal costs, title fees, and other costs that are not needed in a pure cash sale. For a buyer who doesn’t have 20 percent to put down, there may also be ongoing costs for private mortgage insurance (PMI).
A cash buyer is not going to have to pay interest on a mortgage. Over a typical 30-year mortgage, the buyer is going to pay double, or even triple, the amount of the loan in interest. For example, a $100,000 home could end up costing the home buyer $200,000 to $300,000 over 30 years. Buying a home in Amarillo with cash can save you money almost immediately and over time.
Buying a home with cash offers financial security
Without a mortgage to worry about, the homebuyer has more financial security. There is no need to worry about making a mortgage payment if a job is lost or postponed. There is more money available to save for retirement, the kids’ college, or your dream vacation. The buyer also gets instant, complete equity in the property. If there is an emergency, the buyer can draw on the equity for quick cash.
Buying a home with cash is easier than buying with a mortgage
Mortgage lenders will not lend to someone with bad credit. For someone with average credit, the interest rates offered are often so high the monthly payment is not affordable. With a pure cash offer, the need to get a mortgage loan approved is no longer an issue.
Some Amarillo real estate is not considered a good investment from a mortgage lender’s perspective. These professionals may refuse to lend money on certain properties or only be willing to lend a minimal amount. Buying a home with cash prevents mortgage lenders from refusing funds to buyers.
No matter if you buy your home with cash or need a mortgage loan, you will need the services of a qualified real estate agent. Call the Amarillo real estate specialists at Elite Real Estate Group if you need help buying or selling your property. You can reach us at (806) 337-0883 or Contact Us by email for more information about our services. You can also view our listings to see the real estate we currently have to offer or visit us in person at 3955 Soncy in Amarillo, Texas.