How to buy a home without mortgage?

I have the money to buy a home without having to worry about mortgage. How do I start? I need to know everything about this. Steps to own a home.

Is it better if I buy out the home or put a down payment? I just don't want to worry about putting a down payment and then 10 years from now the market takes an unexpected turn and value drops.


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Most Helpful Guy

  • 10 year mortgage would be your best option with a huge down payment. The reason for this is because with the mortgage on your credit report, this will actually save you money especially buying a car or any large items to be able to get 0% financing on many things.

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    • Here's the thing, I have 100k but I want to only spend 30k of it to renovate a home but I need it to be liveable and stay there until I am ready to sell.

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    • Then definitely a bad investment. Best of luck.

    • Thank you for your help!

Most Helpful Girl

  • House values are going to go up and down whether or not you have paid off the house or not. If you're planning on being in the house awhile it honestly makes more sense to take out a mortgage at a rate of 3-4% and take the extra money and invest it. You'll get a return of at least 6% long term. If you just pay off the house you won't be making any money the way you would if you invest the money instead. If the value of your house drops when you go to sell, you'll just have lost all that money either way.

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    • What if I buy a house then rent it out?

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    • I used an extremely conservative 10k for fees, 15k for down payment and mortgage rate of 4% for the math.

    • I have 100k but I only want to use $30k of it to buy a home I can renovate as I am living in it. What do you suggest I do when it comes to renovating? Sorry for bothering you. I clearly have never done this before.

What Guys Said 18

  • Your sub-questions don't make a whole lot of sense.

    In any case, buying a home without a mortgage is easy if you have the money in your bank account. You go buy the house, and you write them a cheque (certified) and that's it (you do need a real estate lawyer, and usually a buying agent). Basically you have to go do extra stuff if you DO want a mortgage. You just skip those steps.

    But then you say 'is it better if I buy out the home or put a down payment'. Putting a down payment means getting a mortgage.

    Then you say you 'don't want to put a down payment and then...'. Whether or not you take a mortgage, if the house falls in value, 100% of that loss is your issue if you sell.

    I feel like you're not asking the right questions for what it is you're wondering.

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    • Well, I dont know what the right questions are. What I was initially asking is what is a better route? Mortgage or to just buy it all in all?

    • Well let’s look at it this way.

      Let’s assume you have 400k. A house costs 400k. You could buy it. Or you could get a conventional mortgage and put down 100k and borrow 300k. If you do the first you own the house period. With the second you have the house but now you also have to pay the mortgage. But you also have 300k on hand still. So the question is: what do you do with the remaining 300k?

      If whatever you do with the 300k earns more than the interest on the mortgage, you’re better that way. Ifnit earns less you’re better off simply paying the mortgage off. Note that there are some tax implications in making the comparison depending on where you live and if it’s your residence or not.

  • "I have the money to buy a home without having to worry about mortgage."

    Wow! You're rich!

    "How do I start?"

    I would start by contacting a realtor to get the process going. Your realtor will ask you questions about what you're looking for (your price range, which neighborhood (s) you're looking at, etc.). You will probably want to keep an eye out for properties yourself by using realtor. com or redfin. com. Sometimes the properties listed on those sites are already under contract, so if you find a property you like, pass the address on to your realtor who can look into it.

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  • I would recommend you find a good trustworthy relator to assist you. That person will know the market place and what steps need to be completed to actually complete the deal. Yes, you could figure them out but I prefer to hire and expert. Or if you know what property you want, hire an attorney who specializes in real estate. I could give you an excellent on in Minneapolis.

    IF you pay cash or finance the purchase you risk the value dropping. I'd even go so far as to say the days of buying a home as an investment are probably over. You should purchase a property only if you want the tax break on the interest (and we may loss that with the tax changes they are threatening) or you basically expect to at least get your money back if and when you sell it. Remember when you buy you are committing to being in the property for years.

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  • Go to a realtor and have them show you around, that’s nice not dealing with the banks , you just need a lawyer to do the paperwork or depending where you live the realtors can just do that for you, you’ll save so much money not dealing with the bank, I wish I could pay for a house in full

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  • Here is an article that might answer your question:
    budgeting.thenest.com/...ying-home-cash-26145.html
    I hope that helps.

    I tried to look for other articles, but that's all I could find. The next best is an article from my anti-debt financial-guru, Dave Ramsey who promotes paying for everything in cash with his website full of free advice. (His background was in finance and real estate, if I remember correctly.) While his article focuses on saving enough to buy a house in cash, he does have local partners, "Endorsed Local Providers" (E. L. P.'s), also in real estate who can give you personalized advice on buying a home in cash. Maybe, they can help you.
    www.daveramsey.com/.../3-steps-to-pay-cash-for-home
    If you find a mortgage more advantageous to your case, he also has a mortgage calculator and often-overlooked tips that can save thousands in interest payments.
    https://www.daveramsey.com/elp/homebuyer-guide

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  • Talk with a realtor fam.

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  • If you can buy a property outright you can usually talk down most sellers. Or banks. So you can actually save some money. If you're thinking of it in investment terms dont. Homes are not a good investment to make simply fir sale in 10 years. The market can be all over the place. My house went from 185k appraisal to 94k in 8 years. Neighbourhood has a lot to do with it.

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  • There's no reasonable reason to buy a house in cash, investing the money will earn higher returns than the interest rate. Plus a mortgage is a great way to hedge inflation, since it's fixed for the next 30 years. Feel free to message me any questions.

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  • Your banker will help you though the proceedings: he knows local laws and customs.
    Nobody knows what real estate prices will be in 10 years from now

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  • Why not buy land and have an A frame built? saves you a lot of money if you have enough to buy without a mortgage

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  • If you have cash but the entire home the money you willsave on intrest would more than offset any possible loss.

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  • Depends how much money you have and what Kind of house you want to buy. I love to see the housing markets and plan my investment. I can give u more details , pm me.

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    • I have 100k in savings but want to only spend $30k on a home that needs to be renovated but something that is livable too until I am done.

    • OK... To be honest, 100k is not a small number, but it will not get u any houses unless the condition is really bad. I'm not sure where u from, I think at this point without a mortgage it will be difficult to buy a house. Or you can buy pre construction houses or condos. But u will still need mortgage when u close it.

    • I want to fix it up. Its okay if its not in good condition just as long as I can live in it.

  • Make sure you get title insurance

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  • Have enough money to buy the house upfront

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  • Lol, lol, lol, lmfao. You don't get finances at all. Do you?

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    • Damn is it that obvious? Lol no, I don't.

  • Talk to a bank or financial planner.

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  • The minimum required is a closing attorney and a certified check. You might want a sales contract and have a title search, and survey done because if no mortgage company is involved you have to watch these things on your own. That is all there is but the attorney should advise you on all this.

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  • Then just buy it outright

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