You have saved enough money to purchase a house with cash, but don’t know how to purchase a home with cash? Then this blog is for you.
How to Purchase a Home with Cash?
Get the Proof of Funds
When you are planning to purchase a house with cash, the first thing you will have to do is get the proof of funds from your bank; a bank statement usually or a proof of funds letter in the name of the buyer.
House Shopping
After getting the proof of funds letter from the bank, you will have to do house shopping. While doing so, you will have to consider a few things in mind such as family size, lifestyle, job location, etc. it would be best if you gave less focus to the cosmetic details of the house. Instead, you should give more importance to the home’s system, such as the HVAC system, windows, roof, etc.
And finally, you will have to consider the house location because you can change everything in the house. But the house location is unchangeable. So, before choosing the house, ensure that the house has all your amenities nearby.
Select a Settlement Agent
Although you won’t have to deal with a bank or lender, you will still need a settlement agent to purchase a house. A settlement agent will ensure that the transaction goes smoothly and that there is no issue with the title of the house. Apart from this, a settlement agent will function as a third party who will be responsible for transferring the money and facilitating the house title transfer. Normally, it is an attorney or title company.
Perform a House Inspection
Once you are done selecting the house, you will have to do a house inspection. You can do it professionally or yourself. It usually takes a few hundred dollars to inspect the house professionally. Also, when you inspect the home professionally, it has more credibility.
Do Title Research
When you are purchasing a house, you must ensure that the house has no unknown claims or lines. Otherwise, there will be a dispute between the parties, and the homeownership process will take longer than expected. This is why before purchasing a house, do title research; for this, you can receive help from your attorney.
Find Out What Fees You Need to Pay
Before closing the deal, you will have to know what fees you need to pay. For example, you may have to pay the closing costs or homeowner’s association fees. To know which fees to pay, you can talk to your agent and attorney.
Close the Deal
When the above steps are completed, it’s time to close it. As you are not purchasing the house with a mortgage, closing is a lot quicker. However, it still can take a week or two if you face complications with the title.
