Buying a home is one of the most exciting events in most people’s lives. There are so many factors to consider during the process. Where do you want to live? How will your family handle moving? And, of course, how will you finance your next home?
If you’re already considering how to buy a house with cash, then you’re well on your way to starting the home buying process.
Let’s explore how that process works and the considerations you might want to make along the way.
The Benefits of Buying a House With Cash
There are many advantages to buying a house with cash. Let’s explore some of them further.
- You won’t have to go into debt. While a mortgage differs from credit card debt, it’s still debt. Not having to worry about a monthly payment or rising interest rates is a great personal freedom that can’t be underestimated.
- You can close on the house much sooner. Why wait to move into your dream home in Frisco? By paying with cash, you don’t need to wait thirty or forty-five days for closing. Once your home inspection is done and other contingencies worked out, you can move in as soon as seven days if the seller is willing.
- Sellers love cash buyers. While every seller is different, this is a strong trend. So strong, in fact, that you can often get a great deal when you connect with the right seller. For the seller, a cash buyer means quicker closing costs, cash in hand sooner, and fewer opportunities for things to go wrong during the mortgage process.
- You don’t have to worry about being approved for a loan. Credit scores? Payment history? Income to debt ratios? Relationship with your bank? These are not things you have to consider when you forego traditional financing in the name of buying a home with cash.
- You won’t be paying interest. With a mortgage, you pay interest to the mortgage company. You do this for fifteen or thirty years typically. This raises the amount of money you pay for a home in the long term when you take out a traditional home loan. Paying with cash means you save a lot of money!
- You can save yourself a lot of stress! By buying a house with cash, you own is outright. You don’t have to talk to banks or worry about them in the future. You never have to worry you could be foreclosed on. You don’t have to worry about paying your mortgage. There is a lot less to stress about because these transactions are much more straightforward.
Is Buying A Home With Cash Right For You?
Despite the many benefits to buying a home with cash, it still may not be the right situation for you and your finances. Make sure you’ve thought your options through before you move forward.
Even if you have a large sum of cash, enough to buy your dream home in Frisco, TX, you might want to hold on to it and consult a mortgage professional still. Make sure you know what’s right for you and your finances in the long term.
- Be Clear About How Much Cash You Can Spend
When you’re making this decision, don’t forget about having money saved for retirement and an emergency fund. You don’t want to deplete your accounts to zero. Financial experts recommend that you have a six months emergency fund saved in case something goes wrong. That means you need enough money to live on for six months in the event you no longer had an income.
- Don’t Forget About Closing Costs
When you’re totaling up the amount of money you have to spend on a home, make sure you consider closing costs. They are usually 3% of the total home value and the buyer typically pays.
This total may be less when you with cash. It’s also true you may be able to negotiate with a motivated seller. If they are motivated to sell their home and encouraged to sell to a buyer paying with cash, you may be able to negotiate having the seller pay part of all the closing costs.
If this is something your budget will require, make sure you plan for that ahead of time.
Where You Want to Live in Frisco, TX
This is real estate, and as the saying goes, it’s all about location, location, location. Fortunately,
Frisco is one of the best places to live in the great state of Texas and there are many excellent locations to choose from.
Be sure to take into consideration where you work and what your commute will be like. Do you work in Frisco, or are you commuting into Dallas? Will that affect where you want to live?
Your neighborhood will also affect the price of your home. Discussing your options with a local realtor who knows the neighborhoods, is current on what is available, and knows the best way to make the most of your cash advantages is a good way to narrow down your options.
Working With An Agent Will Give You More of An Edge
Especially using an agent experienced with buying a home in Frisco, TX, who will know the area and your options. When you have a real estate agent on your side, you have someone who can help you connect with sellers who this will matter to.
Time to Make An Offer
Making an offer is when buying a house in cash really comes into play. Negotiations will be much smoother when you have cash on your side if the seller is motivated. Not every seller will be.
Paying in cash makes the process go much faster because the banks don’t have to be consulted as they would with traditional financing situations. Once you’ve worked through negotiations, home inspections, and any contingencies, closing can take place as fast as a week.
Real Estate Can Be An Excellent Investment
If you know that you have enough money to purchase a home with cash without putting yourself in a risky situation, then real estate can be an excellent way to invest. There isn’t a much better place to put your hard earned cash than in buying your dream home in Frisco, TX. Make sure to consult real estate professionals so you get the best value
Have Questions? Ask Rene!
