Buying a home is a dream for many people, and there are several ways to bring these agreements to fruition. The traditional route is to sign up for a bank loan that you’re obligated to for the next 30 years.
Plenty of people buy homes for cash, and today’s as good a time as any to make it happen. This is a unique way to fund your dream home that’s worth exploring.
Here’s how to buy a home with cash.
Learn Why Cash Purchases Are Great
Start by understanding the perks and benefits of a home cash purchase. A cash home buyer is more attractive to sellers and can help you cut the line. It may also have a couple more perks than building a custom home, so look out for them as well.
Sellers are reluctant to deal with banks and lenders when they could simply transfer ownership to someone that is willing to pay cash.
You also have the benefit of not taking a home mortgage loan. When you take on a mortgage, you’re always contending with the market and the potential for inflated interest rates.
By the end of the loan, you’ve paid far more than you would just be taking care of the principal amount.
The process goes by quicker when you purchase a home with cash, and you will experience lower closing costs. You’ll have peace of mind knowing that you own your home outright, rather than having it tied up in the bank.
Examine Your Current Spending Power
Start figuring out how much you can expect to spend for a home, compared to how much you’re able to.
Hone in on the area where you’d like to purchase a home and come up with a budget for the purchase. Homes in North Carolina sell for a median price of about $173,000 in today’s market.
Consider your net worth and liquidity to know how much you can spend without it hurting your current or future finances.
Study the Market Where You’re Buying
Look into the many details at play when purchasing a home in a certain city or neighborhood.
For instance, Wake County Home Buyers will study the many educational institutions in the research triangle, commuter routes, property values, and tax rates.
Consider the different neighborhoods available to find one that is attractive to your budget and quality of life. Wake County is home to neighborhoods like Jubilee Village, Augusta Crossing, Dowling Ridge, Longacres, and Rosalyn Place.
Make a Property Dream List
Study property details and figure out your deal-breakers. This means examining the number of bedrooms and bathrooms, square footage, power sources, acreage, and other home details.
Figure out if you’d like to purchase a condominium, townhouse, single-family home, ranch, or other types of real estate property. Consider the color scheme, roofing style, flooring style, and age of the property.
You might even start looking at floor plans and blueprints of properties so that you know what kinds of layouts are available.
Secure the Documentation You Need
Cash buyers still have to provide different types of documentation for a transaction to go through.
Get a copy of Proof of Funds (POF) from your bank so that the seller knows you have the money that you need. Sellers are reluctant to move forward without this proof, so get it as early in the game as possible.
Learn about your bank’s transaction times and any transfer fees so that you’re prepared to put some money in escrow while the property deal is hashed out.
Enlist the Help of Some Pros
Always enlist the help of real estate property professionals that can assist you through every stage. A real estate agent is valuable to have because they’ll let you know what types of properties are available.
They have experience helping people in buying and selling a home and can get you the desired results that you’re looking for. Real estate agents can also pair you with sellers that are eager to work with cash buyers.
Find the help of both an accountant and a real estate lawyer that can look over any contracts for you and help facilitate your transactions.
Take a Few Home Tour Visits
Always visit a home in person before deciding to make a purchase decision. Schedule some home tours that let you view the property and get a feel for both the home and the neighborhood.
A real estate agent should let you tour the home at your own speed so that you feel comfortable with your decision. You can also check out virtual tours prior to the in-person visit to eliminate options on your list.
Work Through the Closing Process
Put together your team of professionals so they can help you through the closing process. Closing is much quicker with cash purchases, but you still need to cross every “t” and dot every “i”.
Your legal professional can explain each line item on every piece of paperwork and will facilitate the transfer of property.
How to Buy a Home with Cash Successfully
These tips will help you out when you want to know how to buy a home with cash. It’s an option that every homebuyer should look into when liquidity isn’t an issue.
Begin with the tips in this article so that you can move toward a successful home purchase.
We can also help you with any other real estate or business questions that you have. Use these tips and read our other articles when you’d like further advice on buying a home.