Cash buyer is a term that is often mistaken for several other things, but buying a house using cash indicates buying the property upfront without any house loans or help from a mortgage. It implies that cash home buyers in Atlanta should be able to pay for the property in full without getting financial help from the lenders.
Yet another misconception included here is that most individuals often show up with a briefcase filled with cash to close the deal. There is no room for raw cash in the real estate market, as no one would want to get stuck counting the massive amount of cash.
For instance, if you plan to buy a property without any mortgage, you just need to identify the property and make offers. After the offer is accepted and every criterion is met, the proof of funds is presented as proof of financial stability. Both parties start to draw up and sign the contract paper that mentions that the property is being bought without any loans.
After this is done, you can place your money as a deposit for the home, although the rest of the funds typically get held in the escrow amount that needs to get wired to the title firm right before the day’s end.
Benefits of Purchasing a House with Cash
A few benefits are added to selling or buying a property with the help of cash compared to the other traditional mode of buying a property with a mortgage. The following are the benefits included here:
Reduced Closing Costs
Whenever you are paying cash for the property, it can help the investors save a lot of money by waiving off the closing price. Cash buyers often get discounts on closing fees. They can even avoid the additional charges linked to the mortgages, like the loan origination fees and the mortgage application fees, which make up a substantial part of the closing costs.
No appraisal fee
Before approval for the financing from the mortgage companies, the main need is to carry out the property’s appraisal with the approved company, mainly the one the lender suggests.
Lenders are getting this done to ascertain the real property value and ensure that they are not offering a loan that is normally greater than the value of the property/. The average cost is between $300 and $400; it might even rise to $1200, where the buyer is paying the fees on the property appraisal since the lender needs it.
But, as the cash buyer is not operating with the lenders, they might not get mandated to carry out the property appraisal, allowing them to avoid paying the appraisal costs.
No contingency for loans
One of the most notable perks of buying a property with cash is the lack of loan contingencies in the transactions involved. The security is mainly for the seller, without any clause that entitles the buyers to a refund of any amount spent in the transaction process. Therefore, the buyer will notice the transactions since they are independent of the approval of the mortgage, and the buyer will not wish to lose money by forfeiting the deal.
Payments without interest
The other significant benefit of cash transactions in the real estate industry is the removal of the interest payments linked to the loans. Due to this, the buyer pays for the property at their own expense and is not required to make the payments on the monthly mortgage later. As a result, the issue of paying higher interest on the funds borrowed is removed. Therefore, it could aid the buyer in saving a good deal of money.
Close on the House Quickly
Investors in real estate mainly choose cash transactions when selling or buying a property since it takes less time to close the deal. Generally, this closing process involves buying a home with the help of a mortgage, which takes over a month to finalize. It is mainly due to activities like getting pre-approval on the mortgage, time-consuming steps, and the underwriting of the buying process.
But the reverse is often the case whenever you purchase with cash and close the deal in a week or two. It makes the process highly convenient, saving ample time for both the buyer and seller.
easy transaction process
Directly selling a property to a cash buyer often makes the transaction process easier, reducing the difficulties encountered by both the seller and the buyer and limiting the number of individuals involved in the whole process. Since the buyer is not working with any third parties like the appraisal companies and the lenders, there is no complex chain to work through with fewer risks of complications.
Conclusion
Cash home buyers in Atlanta are one of the most attractive areas for investors to use for acquiring properties since it will make your offer more striking and speed up the closing process, thereby saving money in the future. But it is similar to the other form of transaction in that it is vital to perform good research to better understand what buying a property without any mortgage will include.
