iStock_000020990035Small

Qualifying for a mortgage these days can be somewhat difficult due to strict guidelines. If you’ve always wanted to own your home, but haven’t been able to qualify for a mortgage due to credit problems, it can be frustrating. So what option is left? You could begin repairing your credit, saving up enough for a substantial down payment, and hope that in a few years you may qualify for a mortgage. Alternatively, you could purchase a home with cash, and bypass the mortgage process entirely.

The benefits of buying a home in cash and without a mortgage include:

  • No monthly or biweekly payments
  • No risk of foreclosure
  • Having an asset
  • Your credit isn’t a factor, and you won’t have to worry about your credit getting bad if you miss payments
  • You don’t have to wait for the entire mortgage approval process to finalize, which can take approximately 45 days

There are other advantages, too. Buying a home in full can also help you save on closing costs. When there is no mortgage, you don’t have to put up the cash for a bank lawyer. This expense can range anywhere from $750 and up.

Another benefit? You won’t have to put any real estate taxes in escrow, nor pay the cost for a mortgage application (which can run anywhere from $300 to $600) or the thousands of dollars associated with loan origination fees and other miscellaneous charges. You also won’t have to worry about an appraisal fee, which can range anywhere from $400 to $600, and is something many mortgage lenders will insist on. Although appraisals and home inspections can be beneficial to you anyway, it’s nice to have the option and not be forced into it simply because you are obtaining a mortgage.

Finally, when you bypass the mortgage process, you can also bypass the added expense of title insurance. Let’s say you are financing a $600,000 home with a 20 percent down payment. The title expenses, which include researching local land records, can be as much as $2,000. But approximately one-third of that expense is for coverage that only offers protection for lenders, which they require you to pay for. When you purchase a home in full, it is completely up to you whether you even want title insurance at all, and you won’t be required to purchase it if you don’t want to.

If you would like to purchase a home, but you don’t qualify for a mortgage or you would just like to take advantage of the various benefits of purchasing a home with cash, Peachtree Settlement Funding may be able to help if you’re receiving annuity payments. Depending on the value of your annuity payment stream, how many of your payments you’re willing to cash in and the cost of the home you’d like to buy, you may be able to receive cash for annuities and use that money to buy a home. Contact Peachtree Settlement Funding today to learn more about how you can receive cash for annuity payments and how you can use that money to purchase the home of your dreams. We will be glad to answer any questions you may have about the annuity funding process, and provide you with a completely free quote. Contact us today!

Nothing above is meant to provide financial advice. You should meet with appropriate professionals for such services.