馃攳
Buying A House With Cash VS Mortgage - YouTube
Channel: The Prezzis Miami & Miami Beach Real Estate
[0]
Today I'm going to talk to you about
buying a house with cash versus buying
[5]
with financing and I'm going to get
started right now. I'm a real estate
[16]
agent in Miami in Miami Beach and today
I'm going to talk to you about a good
[20]
question that I get all the time and the
question is what's really the difference
[24]
between a buying a house with cash
versus getting a mortgage, and what are
[29]
some pros and cons or benefits of either
one, and if I have enough cash to
[34]
purchase a house why I may want to
consider that instead of getting a
[39]
mortgage. But first before I get started
with that I just want to tell you if
[43]
this is your first time here hit the
subscribe button so you never miss
[46]
another update. I do put out new videos
every single week. Also I have provided
[52]
for you and the information box a free
relocation guide so make sure that you
[57]
click on that link and download that
today. I'll also add you to our weekly
[61]
newsletter so you never miss another
update. Okay let's get started. I would
[66]
like to just go over a few details of
what you need to know if you are
[70]
considering of whether purchasing with
cash or with financing in our area. The
[75]
first thing is you really have to
determine how you are taking ownership
[78]
of that property. If you are giving
financing and you are buying a primary
[83]
residence a second home or an investment
property, how you are taking ownership in
[89]
that property will really determine the
type of financing that you can get. You
[94]
need to make sure that you have a
conversation with your lender about that
[97]
and I can go over that with you at the
buyer consultation, so you know what to
[102]
expect. If you are buying in a building a
condominium building and you need
[107]
financing, you need to make sure that the
building is in good shape and can get
[111]
underwritten. Now there's no way to know
100% sure until the lender sends over the
[117]
condo questionnaire and ask all of those
questions from the underwriter with that
[121]
condo questionnaire, but unfortunately
some buildings here are ineligible for
[126]
traditional financing, because the
building just does not meet the
[130]
qualification
of traditional lenders. Some things that
[133]
can make the situation a little bit
tricky for financing our issues like too
[138]
many renters in the building, if the
building allows short-term rentals, if
[141]
there's any litigation going on in a
building. Now people say to me of course
[145]
I don't want to buy in a building that
has litigation. Well it depends on what
[149]
kind of litigation. If you're in a
building that has some commercial space
[153]
and then also four or five hundred units
there could be some kind of litigation
[157]
going on inside that building just
because there's so many owners within
[162]
that building. So there's just a lot of
little details that you need to know in
[166]
order to purchase with financing in a
condominium building and it's something
[170]
that we go and take a deep dive into
during a buyer consultation, if you want
[175]
to buy in a condominium building with
financing. Quick pause friends, I do
[179]
realize that I started off the topic
talking about whether you should buy a
[183]
house with cash or financing but the
reality is a lot of our buyers do
[188]
sometimes choose between purchasing
condominiums or houses, so I decided to
[193]
go ahead and just leave the condominium
information because I thought it would
[197]
be a little extra helpful. Another thing
to know is if you're purchasing a
[200]
property with cash, your closing costs
are usually going to be a lot less and
[204]
if you're buying with financing a
general rule of thumb that we use for
[208]
cash purchases the closing costs are
around 1% of the purchase price. If you
[213]
are purchasing with financing you're
probably going to be looking at around 3
[216]
to 5% just depending on sort of the loan
product and also some of the prepaids
[221]
like taxes insurance and anything that
the lender will want to escrow for and
[226]
then. Obviously the cost of that loan so
if you do have cash on hand
[231]
you can save a little bit of money by
not having those lender and card charges.
[236]
Sometimes people will say to me I'm just
going to offer cash because that's more
[240]
appealing to the seller. I will tell
you this it really just depends on the
[245]
nature of the offer. Based on my
experience if a seller has two offers in
[249]
hand and one is cash and one is
financing obviously cash is king and
[254]
people love cash offers. But if it's way
lower or doesn't make sense based on the
[259]
financing and you're just dealing with
the financing piece on this offer
[264]
but everything else is better sometimes
then we'll go ahead and take the
[267]
financing offer and just not do the cash.
It really depends on the seller how
[272]
that offer is presented to the seller
and the terms of the offer. That will
[277]
really weigh sort of the sellers
decision. It's not always cash is king
[281]
even though cash is king it really just
depends on the nature of that offer. One
[286]
great thing with cash is typically the
closings can be a lot faster. Usually we
[290]
can close a cash transaction within
about 15 days here versus financing
[295]
where it usually takes 30 to 45 days. One
of the wonderful things with financing
[299]
right now is interest rates are super
low, so we have a lot of buyers who are
[304]
able to pay in cash but they just want
to take advantage of those lower
[308]
interest rates, and use that cheaper
money to purchase a property right now
[312]
with financing. If you do choose to make
an offer with financing one of the most
[317]
important things I can tell you to do is
to really make sure that you're using a
[321]
lender who is accessible. I know when I
am on the seller side and I take a
[325]
pre-approval letter and I'll call the
lender and try and reach them just to
[328]
make sure that it's a valid letter. If I
can't reach that lender and it's very
[333]
hard to get in touch with them it
doesn't set a very good impression. Make
[337]
sure whoever you're using for financing
that you're choosing someone who can be
[342]
reached to answer questions to make
everyone feel good, to make sure that
[346]
they understand what type of loan you're
getting and to make sure they understand
[350]
the type of product that you're buying.
On the other side if you have questions
[353]
about buying real estate in Miami or
Miami Beach and you are trying to decide
[357]
whether to pay with cash or get
financing let's have a chat. I'll be
[362]
happy to walk you through the process
and explain the best way to get your
[365]
offer accepted, and I can guide you
through that process during a buyer
[369]
consultation. Okay if you have more
questions let me know we're always here
[373]
and I will see you soon.
Most Recent Videos:
You can go back to the homepage right here: Homepage