How Long Does it Take to Buy a House If You’re Paying Cash?
There are a few key differences between buying a home with a mortgage and buying with cash. Using a cash offer is a much faster process than purchasing a home with a mortgage. Getting a home inspection is a must. You can even back out of the sale if the appraisal is too low. If you’re looking to save money on your purchase, you can buy a home with a cash offer through HomeLight.
Getting a home inspection before you close
While it might not seem necessary, getting a home inspection before closing when buying a house with cash can save you money in the long run. The inspector will take photos of the property and note problems. The report will outline any problems and their estimated cost. However, this report is not binding and the seller may still want to make necessary repairs. In many cases, a home inspection report will pay for itself several times over. A home inspector can provide estimates for any needed repairs and create a plan for addressing any issues.
Getting a cash offer
Getting a cash offer to purchase a house may be an appealing option if you are facing financial difficulties, but it should also be considered carefully. While the convenience of a cash buyer may be attractive, the truth is that cash buyers typically offer lower prices. As a result, cash offers are often not a good option for sellers because they put their finances at risk. Fortunately, there are a number of ways to get a cash offer to purchase a home.
Closing on an all-cash transaction is much faster than closing on a home with a mortgage
A home with a mortgage takes longer to close, but an all-cash transaction is considerably quicker. Closing on an all-cash transaction requires less paperwork, no appraisals and no waiting for a loan to be approved. In an all-cash transaction, you make an offer to the seller and sign a purchase and sale agreement contract. The seller agrees to accept your offer, and the sale of your home begins.
Option periods allow you to back out of the sale without any legal or financial issues
Regardless of whether you’re buying a house for your own use or for resale, you should make sure to understand the terms of your option period. This clause allows you to back out of the sale without any financial or legal problems if you change your mind later on. An option period lasts anywhere from seven to 14 days. You can use the period to inspect the home and get an estimate of repairs, if necessary. The option period also protects you from having to work out other deals during this time.
Buying a home with a mortgage without a contingency
A mortgage contingency is a clause in the purchase contract that stipulates that a buyer must secure an acceptable loan or method of payment prior to closing the deal. While a pre-qualification letter does help, it is not a 100% guarantee that a buyer will qualify for a mortgage. During the contract stage, most lenders will require more documentation proving the buyer’s credit worthiness. Without a mortgage contingency, the buyer could lose their earnest money if the lender rejects their loan application, or if they lose their job.
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