Buying a home with cash has some clear advantages. First and foremost – a cash deal requires no mortgage payments. It also saves on interest payments as well. In addition to these rather obvious savings, there are a few additional advantages that come with a cash purchase. Not only will the seller(s) love you (as it makes life so much easier on their end), you will save on closing costs, be able to close faster, and find it easier to get home equity loans. So if you are lucky enough to be in the position to do so, here are a few tips on buying a home with cash in NH.
Have Proof of Funds Available
Even though the seller will love a cash deal, they will likely ask for proof of funds. Being proactive and having this information readily available will only help expedite the sale. Make sure you have the account information on hand with your account numbers already blacked out. This will provide proof without sacrificing any personal and unnecessary details.
Consider an Appraisal
Since you will be avoiding the mortgage process, it is not mandatory to have the home appraised. However, you may still want to get an appraisal on the property to confirm that you are not overpaying and/or lacking crucial information about the property’s value and condition. Since there would be no mortgage contingency in your offer, you may need to specifically include an appraisal contingency.
Purchase Title Insurance
Title insurance is another optional consideration when buying a home with cash in NH. Title insurance protects against unknown defects or flaws in the title that may threaten your ownership rights. Mortgage companies insist on having title insurance when they lend money to purchase a home. As a cash buyer making a significant investment with your own money, you should obtain that same protection by purchasing a title insurance policy.
Work with a Good Title Company
The title company will perform necessary steps for the closing. This includes performing a title search, ensuring that the seller’s mortgages are paid off, preparing a deed, etc. Using an established company will ensure a smooth closing and will also expedite the closing process.
Other Tips on Buying a Home with Cash in NH
So now that you have cash on hand and are ready to buy – what’s your next step? If you follow these tips for buying a home in cash you’ll be ahead of the game and be closing before you know it! Contact us for information on discounted closing fees when buying a home with cash in NH.