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Cash Talks

September 27, 2011

Buying a home with cash is becoming more popular than ever. This year, according to the National Association of Realtors, 32% of home purchases were paid for in cash, up from 26% last year.

One of the advantages of a cash purchase is bypassing the loan approval process, which can be complicated. When you don’t have to submit all your financial records to a lender, you can maintain your privacy and have more bargaining power with the seller. Sellers are often willing to accept lower offers from cash buyers, because the deal is more dependable when it’s not contingent upon appraisals and outside funding.

If you do have the cash to cover a home purchase, the process is faster and easier. You will also have instant equity in your new home; and save on all the interest you would pay over a 30 year loan.

Maybe this is why more homebuyers, who have the available funds, are paying cash for their new homes this year.

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