When the opportunity presents itself, and you find yourself in the position to pay all cash for your new home, you may wonder if buying the home outright is a beneficial course of action. You’ll naturally want to have the house fully insured to protect your investment. You’ll also need to be responsible for your annual property tax payment, as the lender typically rolls the fees for taxes into the mortgage payment.
Read on as we explore five of the benefits of buying your new home with cash in Providence.
No Interest or Closing Costs
One of the financial benefits of buying your new home with cash in Providence is saving tens of thousands of dollars on interest for a mortgage loan and avoiding closing costs. Even with interest rates currently low at 3.68 percent, with an average home value of around $375,000 and a down of 20 percent, or $75,000, you’ll pay $196,000 in interest alone over the next 30 years.
No Qualifying Hurdles
Underwriters must follow strict guidelines to ensure you meet all of the qualifications for the loan so that the lender takes on as little risk as possible in providing buyers with mortgages, and this process takes time. However, your credit score or employment record aren’t required when you’re buying your new home with cash in Providence. The power of cash backing your offer allows you to bypass the long line of buyers who need an underwriter’s final approval.
Another benefit of buying your new home with cash in Providence is that you’ll be walking away with the total amount in your hands. You could acquire a home equity line on the property with ease if you ever desire. When you exit your property in the future, without any debt, the profit is all yours. Even if the market temporarily fluctuates negatively, you’d never be upside down in the home because there’s no mortgage.
First In Line
Standing out against the competition is another of the benefits of buying your new home with cash in Providence. Sellers understand the possibilities of buyers who require financing having their loan denied after weeks or even months of haggling over the deal. Offers from cash buyers come without this risk hanging over your head, which gives you the power to bargain.
The ability to close quickly is another potential money-saving benefit of buying your new home with cash in Providence. In addition, sellers know they will avoid the time-consuming and complicated process of traditional financing, which is attractive to sellers and can provide you with another tool to negotiate a lower price. Finally, working with an experienced negotiator who knows how to delicately navigate these waters as your representative may be wise as these situations can become highly tense and emotionally charged.
At Ocean State Homebuyers, we know all of the benefits of buying a new home with cash in Providence and can help you through the process. The professional investors at Ocean State Homebuyers understand that clear communication begins with listening, so we stop and take the time to learn about your unique circumstances, working together with you as a team to achieve your dreams. At Ocean State Homebuyers, our goal is to help you make educated decisions so you’ll be confident you’ve made the best investment with your hard-earned money long after closing, and we don’t work on commissions. Don’t forget to ask about our current inventory of the best properties available in Providence. Why not benefit yourself further by working with the professional investors at Ocean State Homebuyers who have decades of experience. Contact Ocean State Homebuyers today at (401) 290 8784 to learn more!