If you’re lucky enough to be able to pay for your new home in cash, you may still be considering taking out a mortgage so that you don’t use up your entire savings account on one purchase. Consider these advantages to paying for your home in full. If you have more questions, ask us about real estate legal services of the Hudson Valley.
1. You’ll get more favorable conditions from the seller because they’re happy to have a smooth sale. You’ll have a lot of wiggle room when it comes to price, closing time and repairs. Poughkeepsie lawyers can help you sort through some of these issues.
2. In the end, the price of the home will likely be lowered.
3. The transaction will require much less paperwork than usual, which also means that the purchase won’t be delayed because of a mortgage approval.
4. You won’t just save money on the home itself, but also on closing costs, mortgage application fees, bank appraisals and title insurance.
5. You won’t face the all-too-common stress of being denied for a loan.
6. Since you won’t have a mortgage, you also won’t be paying interest on the loan. That means that you’ll spend much less over time.
7. Since you don’t have a mortgage to repay, you never have to worry about losing your house to the bank.
8. You’ll immediately have full equity in your home.
9. You won’t be at the mercy of a low appraisal. When a lender appraises your home for its value, they often compare the house to other neighborhood homes that have sold at lower-than-normal prices. If your appraisal is low, the loan will be too, even if you’ve already settled on a price with the seller. Often, buyers aren’t able to purchase a home because the loan is too small.
If you’re thinking about purchasing real estate, considering speak with Dutchess County lawyers who know the ins and outs of the local market.