Being able to buy a house with cash is a feat that some people dream of. Just knowing that you can find a house, make an offer, and place the cash on the closing table is enough to fill a person with joy. It takes a lot to save up enough money to actually pay cash for a house, and if you've had the discipline to do it, you should definitely be proud of yourself. However, before you decide to empty out your savings account and invest it all in your new home, find out why it might be smarter for you to actually take out a mortgage.
Getting A Mortgage Lets You Save Your Liquid Capital
Having a fully stocked savings account isn't something that happens every day. There are people out there who can only imagine being able to have enough money to cover an emergency situation without having to take out a personal loan or borrow from friends and family. If you are so lucky to have enough money in your possession to actually be able to purchase an entire house, you might want to hold onto it.
If you take out a mortgage, you may be able to conserve most, if not all of your cash reserves. You could qualify for a mortgage program that requires no money down and where all closing costs are paid for by the seller. This is a very wise route to take because you never know what kind of maintenance issues could pop up the second you actually move into the house. With a mortgage, you'll have the loose capital to fix the problem immediately.
Your Mortgage Can Work For You
Taking out a mortgage puts you in line for some incredible benefits. For example, if you decide that you want to renovate the house later on and add another wing to the property, it could be quite easy for you to get a home equity line of credit if you've already established a great payment history with your lender. You are essentially boosting your credit score with each on-time payment that you make and this can work out in your favor if you ever need a lump sum of money from the bank.
There are so many mortgage programs out there that could allow you to get into a beautiful home without sacrificing your liquid cash. Talk with a lender to learn more about your options and decide which one is right for you.