David McMillin | Bankrate.com
Buyers who are able to buy a home outright, without a need for financing, also avoid dealing with today’s high mortgage rates. Unsurprisingly, those who can afford it tend to be older. An April 2023 — You’ll lower your closing costs. Since you won’t be getting a loan, you won’t have to pay a lender to review your application, check your credit or any of the many loan-related fees often due at closing — which can translate to significant savings.
— You’ll pass up some potential tax perks. When tax time arrives, homeowners with mortgages can benefit from writing off the interest on their home loan. If you pay in all cash, you won’t get that deduction.All-cash offers tend to close faster than deals where a mortgage is involved. However, it’s not as simple as forking over the money and shaking hands. There’s still work involved, and the seller will need to check some items off the list.
— Budget for both the property and extra expenses. In addition to having enough money for the purchase itself, you’ll need to make sure that you can cover other costs such as property taxes, homeowners insurance and moving expenses.