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What is a cash home purchase?

A cash home purchase just means you’re paying the agreed-upon price in full, rather than via financing. You’re drawing from your own resources — be they savings, sales of investment assets, retirement account withdrawals, or financial gifts from other people — as opposed to seeking a loan.

Should you buy a home with cash?

If you can afford to, buying a home with cash can make your offer more appealing to sellers and speed up the closing process once your offer is accepted. And avoiding a mortgage means saving plenty of money in closing costs and interest over time. Plus, you’ll immediately own your home free-and-clear.

Are all-cash home purchases a good idea?

All-cash home purchases are a regular feature of today’s housing market, especially for those buying a second home or an investment property. According to the National Association of Realtors, 26% of purchases of existing homes in November 2022 were cash sales.

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