While an all-cash offer has many positive qualities, there are still some pitfalls you’ll want to avoid. Here’s how to do it right.
Put the money in one place. You can use cash from a variety of sources to buy a house—including personal savings, cash gifts, and inheritance—but having your home-buying funds in one account can make it easier for you to keep track of the money you’re going to need. Also, because bank transfers can have delays, you don’t want to be moving money around shortly before closing.
Provide proof of funds. You’ll have to provide the home seller with a copy of your bank statement as proof of funds when you submit your offer.
Don’t forget your other home-buying expenses. Even if you plan on buying a house in cash, you still have to budget for the costs that come with any home purchase, including the following: Property taxes, Homeowners insurance, Homeowners or condo association fees, Home inspection, etc.
Don’t completely drain your savings. Paying for a house in all cash should not leave you scraping the bottom of your bank account!
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By Daniel Bortz
Published on June 13, 2023