Whether you’ve just inherited some money or you’ve been saving up for years, you may be wondering what’s your best bet for buying a home. Should you take the plunge and pay in cash, or take out a mortgage and enjoy the tax advantages? To make the decision process a little easier, we’ve narrowed down the top five advantages of paying for your home in cash:

The home buying process is easier

When paying in cash, it’s much more simple. Your deal is more likely to be a sure thing; therefore your offer is more enticing to sellers. According to USA.gov, there are many options available for homeowners who require mortgages. However, these programs can involve lengthy application process and processing times and aren’t always a guarantee. Sellers will see you have cash and will be able to close quickly, and they will be more likely to accept your offer. In addition, you won’t have to worry about your credit score, lenders or officials from the bank approving your loan application. In other words, cash is king.

No mortgage payment

When you pay cash for your home, you won’t have to take out a mortgage. This means you won’t have to pay a bill monthly to your lender — and better yet, you won’t have to pay any interest on your home. Interest rates on mortgages can mean thousands of dollars more spent on your home over the course of a 15-year or 30-year period; According to HUD.gov, most home buyers have to shop around to find the best rates. Without a mortgage to pay monthly, you will have a lot more freedom in your monthly budget.

The Security

Unforeseen things happen daily. Whether you lose a job or have an unexpected medical expense, you won’t feel as stressed about it if you don’t have a mortgage. In addition, you can invest in a better homeowners insurance policy and increase your home security in Charlotte. According to USA.gov, investing in home security can help save you even more money on your policy. Since you don’t have to worry about a monthly payment, you can invest in a better policy that provides you with nearly complete coverage in any type of event; This also helps you to protect assets, and will allow you to sleep easier at night.

Closing costs will be lower

The cost to close on a home is expensive, and a portion of it is paid by the buyers. If you’re paying cash, your closing costs will not be as high because there isn’t as much legwork involved in sealing the deal.

The market fluctuations

If you choose to sell your home in the future, you won’t have to worry about earning enough money to cover the rest of your mortgage. That, in turn, will allow you to make another down payment. With a cash investment, the sale of your home will be entirely profit.

Paying cash for your house allows you to invest your money while still having equity available to you if you need it. At the same time, without a mortgage payment, you will have more freedom with your monthly income. This means more vacation, more discretionary income and more fun.

Megan Ericson, Guest Post Author

A real estate agent and financial consultant for local SMBs, Megan shares insights on how to organize your finances.