Can I Get A Mortgage After Buying A House With Cash?
Buying a house is a major financial decision. Most homeowners carry mortgage loans for their housing expenses.
However, many people have trouble qualifying for a conventional mortgage loan. Fortunately, getting a mortgage after buying a house with cash is possible.
Cash buyers get fast results from buying houses. Most lenders require 30-60 days to approve a mortgage for a house that’s purchased using cash.
That’s compared to the several weeks it takes to process an application for a loan from a conventional lender.
Is It Smart To Apply For A mortgage after Buying A House With Cash?
Applying for a mortgage after buying a house with cash is smart if you want to lock in your home’s selling price and qualify for as much debt as you can comfortably handle.
Cash buyers also have some disadvantages
Cash buyers also have some disadvantages compared to those who apply for conventional loans.
Some of the most common disadvantages include being older than 40 and having bad credit or no credit history.
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Although these issues aren’t ideal, they don’t mean you can’t buy a house if you have them.
While some people may look down on you, most homeowners understand that not everyone can afford a conventional mortgage.
Even so, many look down on cash buyers no matter what their circumstances are.
If you do have one of these issues, you may still be able to buy a house if you’re willing to wait for the right deal and have plenty of patience.
Some less reputable lenders – also known as ‘substandard lenders’ – offer mortgages to people with bad credit or no credit history.
These are called ‘subprime” loans, and they’re incredibly risky but possible if you know where to find them.
If you do find one of these low-quality lenders, be sure to read all the fine print before signing anything!
Buying a house is an excellent way to secure your long-term financial future.
Many cash buyers skip their applications and apply right away to purchase their first home with cash.
For these reasons, it’s smart to understand how quickly you can buy a house using cash versus applying through conventional means.
Finally, it’s also smart to know that even if you don’t qualify for a conventional loan, you can still buy a house with cash if you’re willing to wait and handle your application right.