Purchasing a home can be a difficult decision. You may spend several weeks or months thinking about amenities that you may want or neighborhoods that you’d consider living in. You also have to spend time searching for properties that are available in your preferred area.

Some buyers decide to pay for their home with cash. This is usually more expensive, but it can save some time and hassle in the long run. You won’t have to worry about taking out a mortgage loan or having your credit checked by lending institutions.

Buying a home in Tennessee isn’t always easy. There may be delays or unexpected problems that can occur from time too time. However, you should still be able to accomplish your goal. Patience, persistence and a proactive plan of action are essential for success.

Here are a few steps that you should take if you’re planning on purchasing a house with cash:

1. Get your finances in order.

The first thing that you should do is to make sure that you have enough funds on hand to buy a home. You might have to empty any retirement or savings accounts that you may have to do so.

Just make sure that you talk with your accountant or financial planner first, so that you fully understand any tax obligations that you may incur as a result of those actions.

2. Talk to your bank about getting proof of funds.

Once you’ve ensured that you have enough money, the next step is to schedule a meeting with a representative at the bank, credit union, or other lending organization where your money is held. You can ask them to supply you with a letter that confirms that you can buy a property up to a specific dollar amount.

This letter should be included with your purchase offer. It won’t guarantee that you’ll be able to buy a home, but it can definitely give you an advantage over other interested parties who haven’t secured their financing. Of course, if your funds aren’t in a bank account, you can skip this step entirely.

3. Work with a realtor.

You can now start shopping for homes! You may want to consult a realtor to find available properties that meet your criteria.

You could search for houses all by yourself, but most people don’t have the experience or knowledge of home sales that most real estate agents do.

Realtors also have extensive connections with title agents, appraisers, home inspectors and other people that may become involved in the process.

4. Attend open house showings.

Your real estate agent will schedule several open house showings for you.

Take the time to attend as many as you want. Pay attention to the interior and exterior conditions of each house that you visit. Make a list of the pros and cons of each property before making a buying decision.


5. Make an offer when you’re ready.

When you’ve found the ideal home, you can make an offer. The home seller can accept the offer, reject the offer or ask to negotiate with you.

If your offer is accepted, a purchase agreement will be created. You can ask for certain contingencies in this agreement, such as requiring that the house be appraised and inspected before the transaction can be completed.

6. Consult with a settlement agent.

Settlement agents are important to many real estate sales. They hold and transfer money for home buyers. Settlement agents also help with title transfer and title searches.

The settlement agent in most states will probably be either an escrow firm or a title company. Other states may require that an attorney handle the closing process. Your realtor can help you find a settlement agent that best meets your needs.

7. Prepare your earnest money payment.

Earnest money, or a good faith deposit, is a dollar amount that you’re willing to put down on the purchase of a home to show that you’re serious about becoming the new owner.

If you’re offering earnest money as a part of your purchase agreement, you should get a cashier’s check for that amount. This is a safer, more secure option than bringing cash.

8. Have the home inspected.

An inspection of the home should be scheduled as soon as possible after the seller approves your offer.

A licensed inspector will review the property and then issue a report with their findings. If there are items that need to be repaired, upgraded or renovated, discuss them with the home seller,

You can have the seller pay for those costs, you can pay for them or you can agree to split the costs of these items evenly. You have the right to walk away from the deal if major problems have been discovered if this has been added as a contingency to the purchase agreement.

9. Purchase a title insurance policy.

Title insurance policies protect home buyers in the event that there are outstanding liens or debts against the house that they’re buying or if someone else has a legal claim to that property.

Title searches are an important step in a home purchase. The settlement agent should search for the title to clarify whether or not the home seller is the only party that actually owns the home.

10. Buy a homeowners insurance policy.

Homeowners insurance isn’t required, but it is often recommended in most cases. These policies.cover damage incurred by storms, fire and natural disasters.

Costs for homeowners insurance policies can vary according to the type of coverage and where you live.

You may want to talk to your current insurance agency, as you may qualify for a reduced rate if you already have other existing types of insurance with them.

11. Get the home appraised.

A home appraisal should also be scheduled. The appraiser will survey the house to let you know if the offer that you’ve made is at or near the home’s actual value.

If you’re concerned that you may be paying too much, you can create a contingency in the purchase agreement that lets you walk away or renegotiate with the seller if the appraised value is much lower than expected.

12. Secure your payment for the remaining balance.

After the house has been inspected and appraised, you can talk to your lender about getting a check for the balance that’s left to pay.

This amount will be the total purchase price minus any earnest money that you’ve already paid. You can have the funds sent via wire transfer or you can ask for a cashier’s check for the respective dollar amount.

13. Attend the final walkthrough.

Your real estate agent will schedule a final walkthrough before the closing has been completed.

You can go through the house one more time to see what the seller kept and what they left behind. You can also examine any areas of concern that the inspector mentioned in their report if you wish.

14. Plan for other ownership costs.

There’s more to buying a home than just having the funds for the purchase price. You’ll also have to pay monthly utility bills and for regular maintenance and upgrades as necessary.

You may also be responsible for homeowners, townhome or condo association dues. That’s why it’s a good idea to prepare a budget for yourself so that you know approximately how much to set aside for those charges.

15. Prepare for closing.

Homes that are paid for with cash typically close in about a month or less. Your realtor will let you know what you’ll need to bring for closing. In most cases, you’ll be asked to provide your identification and the wire transfer or cashier’s check for the remaining balance.

16. Move in!

The seller will receive their funds for the sale. You’ll get the keys to your new home. The transaction has been finalized, and you can move in as soon as you’d like. You may want to transfer the utilities over to your new home before you move in, depending on what services you need and the billing cycles.

Buying a home with cash is relatively easy. The biggest concern is having enough money to pay for the property up front. It may take you several weeks, months or even years to save up for the purchase.

Don’t give up or let yourself be discouraged if you encounter any problems or setbacks. Focus on your goal. You’ll soon own the house that you’ve always wanted before you know it and can start the next chapter of your life.

Have Questions? Ask The Lumiere Team!

Your real estate agent is the best source of information about the local community and real estate topics. Give Rebecca Edwards call today at 901-451-2001 to learn more about local areas, discuss selling a house, or tour available homes for sale.

How to Buy a House with Cash in Tennessee
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How to Buy a House with Cash in Tennessee
Purchasing a home can be a difficult decision. You may spend several weeks or months thinking about amenities that you may want or neighborhoods that you'd consider living in. You also have to spend time searching for properties that are available in your preferred area.
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