In today’s market, many customers buy houses with cash, rather than a mortgage, to expedite the process and avoid closing costs. And while this strategy may be great for investors, it is usually not a very good idea for people buying a primary residence or a vacation home. When considering if buying a house with cash is right for you, you must ask yourself a series of questions. The first question you should consider is whether or not you would qualify for a mortgage. If you are unsure of your ability to qualify for a mortgage, then buying cash might be a great idea, as you will not have to go through underwriting; you simply write a check at closing and own the house. Another question you must ask yourself is what is your timeframe? If you need to close in less than 20 days, or if there is a very strict deadline, it might make sense to buy cash. You can always take a mortgage out after you buy the house, but if you will be jeopardizing the deal because of the mortgage, it makes sense to buy the house cash. Next, you should find out what your tax bracket is. Interest and insurance on a mortgage may be deductible. So, the tax savings alone could make the mortgage a worthwhile payment. Finally, you need to consider what you could make on the money you are tying up in a house. Many of my clients who consider buying a house cash can earn a higher return on their money than the interest rate on the mortgage. So, if you can earn 7% interest on your money and are paying 4.5% on a mortgage, then by getting a mortgage instead of liquidating the savings account means you are making more money than spending, which makes great financial sense. Whatever your situation, it is always a great idea to let a qualified mortgage professional review your circumstances to help guide you in the right direction. If you are considering purchasing a house cash but would like some advice, please contact me. And if you have anything to add about buying a house with cash, please leave a comment.