Why would you want to use cash when you find your perfect home in Millburn Short Hills?
Let’s look at the reasons why – and why not.
The primary reason is, of course, to enjoy the security of having a home that’s paid for. There’s no worry that a financial crisis could cause you to lose your home. But there are more good reasons.
Cash homebuyers often get better deals. Because cash reduces the red tape for sellers and give better assurance that the transaction will actually close, cash offers may be accepted over higher offers involving mortgage loans.
As a cash buyer, you won’t have to jump through the hoops of appraisals, inspections, etc. and you won’t have to provide Title Insurance for the lender. Do remember, however, that if you purchase with cash, you must insist that the seller provide Title Insurance covering you. Without it, you have no idea what kind of prior liens might be lurking in that home’s history. There could be things even the seller doesn’t know exist.
If you pay cash and later decide you have a better use for your dollars, you can get a home equity loan.
Having a better use for the money is the primary reason not to use your cash when you purchase a home here in the Millburn Short Hills area.
After all, with mortgage loan interest rates hovering around 4 – 5%, you can probably invest those dollars somewhere else and still make a profit after paying the interest on your home loan. Do remember that these low rates might not be around forever, so if you think you’ll want the money, it might be wise to get the loan now, and not wait until rates go up.