Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option

Have Questions? Call 949.973.0141

Cash or Financing?

cash financing

Knowing your options enables you to make the right decisions.


The application of knowledge is power. Especially when that knowledge relates to your home buying options. It would seem obvious that paying cash outright for a property is the best way to purchase a home but there are many factors to consider. Cash offers are great for winning bidding wars but might not make the most long-term sense depending on your individual situation.

Cash is king?

Agents and sellers love a cash offer. Bringing cash to the offer table puts all the negotiating power into your hands. It signals a quick and sure closing to the seller. There are no loan applications or bank statements or delays from appraisals. Buyers don’t have to worry about credit issues and not having to pay closing costs is a nice savings. You might even be able to move in sooner!

When a mortgage makes sense

There is another side to the cash coin. Sometimes obtaining a mortgage, even when you don’t have to, is the best option. Having a mortgage on your home means less financial risk on the off chance something goes wrong. Imagine something devastating happens to your home that isn’t covered by insurance. Would you rather have 20% invested, or 100%? Tying up all your cash also leaves little room in case of emergency repairs on your new property.

Financing your home will mean a monthly payment going out. However it also means you’ll have more cash reserves that can be invested and working for you, possibly at a higher rate of return.

Everyone has a unique set of circumstances and personal financial goals. These must always be accounted for when considering a home purchase. With the help of a mortgage professional, you can find the perfect fit for your personal needs and goals.

If you’re looking to compare options and analyze the financial differences, be sure to ask us for a Home Mortgage Report. This report will give a highly detailed analysis of up to four mortgage options side by side. It’s an invaluable tool to help hone in on the program that will best suit your financial needs and goals. Reach out today with any questions.

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