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.

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’. Read more https://www.sunrisehomebuyers.ca/sell-my-house-fast-in-sherwood-park-alberta/

 

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.

Leave a Reply

Your email address will not be published. Required fields are marked *