It doesn’t always take very long for a home buyer and a home seller to come to an agreement on the purchase of a home. Some buyers and sellers are able to strike a deal within just 24 hours. But more often than not, it takes quite a while for a home buyer and a home seller to close on a house. When a buyer needs to obtain a mortgage to pay for a home, it takes anywhere from 30 to 60 days on average.
That being said, it’s usually a much different story when a home buyer is going to be paying a home seller cash for a house. In this situation, a home buyer and a home seller can close on a house much, much quicker.
So, how long does it take to close on a house with cash? And how exactly do you go about doing it? We’re going to break it down for you today.
If you’ve been wondering, “How fast can you close on a house with cash?”, you can find your answer below.
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What Does It Mean to Close On a House With Cash?
Before we start talking about how you close on a house with cash and how long it takes to do it, it’s important for you to know what it actually means to close on a house with cash. It’s not something that many people have ever done.
During a normal year, only about 15% of house closings are done with cash. Just about all of the other house closings include home buyers taking out mortgages to pay for the houses they’re buying.
But there are some individuals and companies that come to the closing table with all-cash offers. You can do this yourself if you have the cash available to do it, or you can work with a company that will help you sell your house for cash.
Either way, closing on a house with cash is the easiest way to get a real estate deal over and done with. It’s why people will try to do it whenever possible.
How Do You Close On a House With Cash?
If you ever decide to close on a house with cash, you’ll need to follow a very specific set of steps. Regardless of whether you’re buying a house for cash or selling one for cash, it’ll be imperative that you take the right steps to ensure that a home sale goes through without any problems.
Here is how you’ll need to go about closing on a house with cash:
- A home buyer and a home seller will come to terms on the purchase price for a house and sign a legally-binding contract
- A home buyer will prove that they have the funds to purchase a house from a home seller with cash
- A home buyer and a home seller will hire title and escrow companies to assist them with a closing
- A home buyer and a home seller will look over closing documents and sign them all
And that’s it. Once these steps have been taken, you can close on a house with cash and be done with the real estate transaction at hand.
How Quickly Can You Close On a House With Cash?
As we mentioned earlier, you might have to wait for up to two months in some cases to close on a house when a home buyer has to obtain a mortgage. That’s how long it will typically take for a home buyer and their mortgage lender to get all their ducks in a row.
But when you close on a house with cash, it won’t take anywhere close to that long. You can usually close on a house with cash in a matter of just two weeks, if not sooner. Since it’s an all-cash transaction, you won’t have to wait around for a mortgage lender to get their act together.
What Are the Benefits of Closing On a House With Cash?
There are so many benefits of closing on a house with cash. First and foremost is the fact that you’ll be able to get a real estate deal done quickly.
But the benefits don’t stop there. When you close on a house with cash, it’ll benefit a home buyer by earning them a better deal on a house in most instances. A home seller will be a little bit more willing to agree to a lower purchase price since they’ll be able to unload their home so fast.
It’ll also benefit a home seller by allowing them to get their hands on the profits that they’ll make by selling their house way sooner than they would be able to otherwise. It really works out for both sides when an all-cash deal is made.
Is Closing On a House With Cash the Best Option for You?
Now that you know how to close on a house with cash, you should consider if doing it might be a good option for you. Whether you’re interested in buying a new home or selling one, you can reap the rewards of closing on a house with cash rather than getting a mortgage lender involved.
You should think long and hard about potentially closing on a house with cash. It might be the best real estate move that you could make at this current moment.
You Should Try to Close On a House With Cash If You’re in a Huge Hurry
Closing on a house with cash isn’t going to be for everyone. If you have time to wait to close on a house, you might want to go the traditional route when buying or selling a home.
But if you don’t have much time to spare, you should attempt to close on a house with cash. As you’ve learned here, it’s very easy to do it, and it’ll put you in a position to close on a home way faster than you would normally be able to.
Get more great advice on buying and selling homes by taking a look at the other real estate-related articles on our blog.