Home Buying With An All-Cash Approach - The Pros and Cons

Posted by Aya Netanel on April 2nd, 2021

Buying a home for sale in Kensington MD can be a huge decision when it comes to understanding the market, mortgage loans and other aspects. However, the home buying becomes a bit easier when you opt for an all-cash home buying strategy. The article below determines the pros and cons of buying a home with an all-cash approach.

Do you think buying a home for sale in Kensington MD isn't a viable decision without a mortgage? Then you are wrong here, as it is possible if you plan to buy a home with cash. Yes you heard that right! You need not have to be a millionaire to buy a home with cash. In fact, such deals are quite common and have several advantages over buying a home for sale in Kensington MD on a mortgage.

Some of the situations where buyers may find paying cash for a home purchase a better option include:

  • Have a large sum of savings at hand.
  • Won a lottery!
  • Flush with equity as already long term homeowners.

Are you seriously looking forward to buy a home in cash, then it is a good idea to make sure that you understand all the pros and cons of the same before signing on any agreement or deal.


  • A Smart Strategy to Get Through the Tough Seller’s Market

When the seller's market becomes difficult to deal, an all cash home buying strategy becomes the most effective choice. It improves the chances of success by almost 95% in a competitive offer, which proves that buying a home with cash helps buyer in getting through the competition.

  • A Money Saving Approach

Buying a home with cash helps you save money on several expenses that mostly include loan related expenses such as closing costs, title insurance of the lender, and other fees that lenders often charge to take out a mortgage. Other expenses that you can avoid here include processing and filing fees. Since closing costs can equal to about 2 to 5% of the home buying price, paying cash can help buyers avoid many of these expenses.

  • Saving up on Mortgage Interest

As far as savings is concerned, not getting a mortgage loan implies that you won't have to pay mortgage interest for the next 15 or 30 years. Even if the current interest rates are low, paying the interest for the loan can cost up to some thousands of dollars. On the other hand, with a cash purchase you won't have to worry about this additional cost and save more money.

  • Simplified Sales Process

By getting a mortgage a buyer may have to face numerous obstacles in the way. But an all cash purchase tends to close sooner because there is less paperwork and no lender involved. Buyers and sellers will avoid encountering any delays related to a low credit score, mortgage approval as well as a poor home appraisal.

  • A Peace of Mind is Gained

Life without mortgage is a life filled with peace. Without a mortgage, you can live a life without worrying about monthly payments. Buying home with all cash provides security and peace of mind. Even if you lose your job or financially things turn bad, you will be assured that you will not be foreclosed on as you already own your home. All you will need is to pay on a monthly basis are the property taxes and homeowner's insurance.


  • Buying a home with cash can limit your liquidity as you'll be paying a huge amount of money upfront.
  • All cash home purchase may possibly limit your investment opportunities as you will be tying the majority of your money into just one asset.
  • An all cash home purchase will not contribute to your credit score.

Now that you can see that the pros outnumber the cons, you can go for buying your home for sale in Kensington MD with an all-cash approach. However, the choice is all yours!

Author Information:

This article is written by Magnolia Realty, a well-known and experienced realtor who can help you buy your dream home for sale in Kensington MD at the best price.

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Aya Netanel

About the Author

Aya Netanel
Joined: October 30th, 2019
Articles Posted: 20

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