Can You Get a Mortgage on a Cash Only Property?
If you are looking to buy a property and don’t want to take out a mortgage, then buying a cash only home may be the right option for you. However, is it safe to do this?
There are many reasons why you might consider buying a cash only property. The first reason is that you are likely to save money in the long run. This is because you won’t be paying interest on a mortgage, and the fees that come with the process can also be eliminated.
Secondly, you will often be able to close on your purchase more quickly than you would with a mortgage. While a mortgage could take over a month, a cash only deal can be closed within a week or two.
Thirdly, a cash only deal will usually be less stressful for both the seller and the buyer. This is because you won’t have to go through the stress of dealing with a mortgage lender, which can cause delays and problems. Read more https://www.webuyanykindahouse.com/sell-your-house-fast-in-medford-ma/
Fourthly, you won’t have to worry about the property falling through or the seller exiting out of the sale because they were unable to get a loan approved. This can be a major concern for sellers and it’s why some are choosing to list their homes as ‘cash only’.
Fifthly, if you are buying a distressed property then a cash only purchase is often easier than a traditional mortgage. This is because a hard money lender will often consider the property’s current value and its estimated after-repair value when deciding whether to provide financing.
This means that you can sometimes secure a mortgage on a cash only property with a hard money loan, which will often require less documentation than a traditional mortgage loan. This can be a big advantage for distressed property buyers who need to close on the property as soon as possible.
The next benefit is that you won’t need to wait for a mortgage to be approved and processed. This will significantly reduce the time that you spend on a home purchase, which can be very important for those who are buying a home as an investment.
You will also be able to eliminate the cost of surveys and legal checks that are normally required with a mortgage. This will also make the transaction much faster, which can be especially helpful if you are buying a home that is new build and have already had a survey done.
Sixthly, you won’t have to pay stamp duty and transfer duty on your property if you are paying in cash. This can be a huge saving for you, as well as the seller.
Finally, you will be able to remove the financing contingency from your offer which is also a major plus for the seller. This is because they don’t have to worry about you not being able to get a mortgage, the appraisal coming in low or the economy getting worse.
