SHOULD I PAY CASH OR FINANCE?

SHOULD I PAY CASH OR FINANCE? A common question buyers often ask. There are advantages and disadvantages to both. A lot will depend onthe type of home you are buying. Certain loans products such as FHA for instance, will not allow buyers finance properties, which are missing components such as appliances. There are Home Improvement Loans available, that allow the borrower to incorporate restoration expenses such as a 203K Home Loan. On low end properties, lenders have recently tightened their requirements on credit lines to slow down investors who were buying on the decline. Making it harder for them to buy on margin using the collateral of other properties they have acquired.

FOR MATURE BUYERS

FINANCING MAY BE A WISE AND STRATEGIC MOVE. Why would you want a mortgage in your golden years? Well, if you have never had one, there are certain advantages.

1) It allows you keep your investments earning for you. Reducing your capital outlay onthe purchase of a property is indeed keeping your cash working for you.

2) It is a smart hedge against inflation and home devaluation. Which have an inverse relationship.

3) Lenders cannot deny you credit based on your age.