3 Steps You Could Choose To Skip If Buying A House With Cash

If you have enough cash saved up to buy a house without financing it, you may be able to skip some of the steps that are normally needed when a person buys a house. This is because buying a house with cash eliminates the need for a lender, and the lender involved typically sets forth rules and requirements the buyer must follow before the loan can close. Here are three steps you could skip when paying cash for a house; however, you should fully understand that it is not always a great idea to skip these steps.

Title search

The first thing you could skip is a title search. A title search is always required when a lender will be offering a loan to someone to buy a house, but you do not have to do this if you are paying cash. A title search is done simply to make sure the home has a clean title. If, for example, the home has liens on it, you would have to pay these if you ever try to sell the house, but you would not know this if you had not paid for a title search of the property.


Banks require appraisals so they know how much money to loan on the homes people are buying. A bank will typically only offer around 80% of a home's value to a borrower, and the bank will determine this amount by getting an appraisal completed.

When paying cash for a house, you do not need to pay for an appraisal if you choose not to. The downside to this is that you may have no idea how much the house is really worth if you opt out of an appraisal.


In addition, when financing a house, your lender may require inspections. This could include a termite inspection, sewer inspection, and home inspection. These are designed to help protect the lender when offering loans on homes, but you can opt out of these too if desired.

When you get inspections, you can find out the current status of parts of the home you are buying. Choosing not to get these can result in unforeseen problems with the house, and the problems might be costly to repair.

Buying a home with cash can make a deal go through faster, but there are risks if you choose to skip these steps. To learn more about this, contact a real estate agent.