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What if I want to put All Cash Down on a New Home?

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What If i want to put all cash down on a new home?

For those home buyers who can afford to pay cash for a home (and not many can), the process is a very easy one. Since all-cash buyers are able to sidestep what can be a time-consuming loan qualification process, the loan can close very quickly. All-cash buyers will experience fewer hassles and will be in a stronger position to negotiate price. Most importantly, all-cash buyer is able to completely avoid mortgage interest, which can total hundreds of thousands of dollars over the life of the loan. Buyers also save money that would be spent on the appraisal, loan origination fees, closing costs and various other charges imposed by the lender.
There are some potential pitfalls to consider, however. Buyers who want to use the home as their primary residence lose out on many of the tax advantages available to homeowners with conventional loans, since the IRS allows home owners to deduct all mortgage interest on loans up to $1 million.
If you can afford to pay cash but are concerned about price appreciation, you may be better off obtaining some financing. Also, look at other which investments are paying off and determine if spending cash on a home is worthwhile.