How much money is saved if you pay cash for a closing versus obtaining a mortgage?
If you are a cash buyer your customary closing cost consists of recording the deed, if you wish a survey, the cost of the survey, a home inspection, which I would recommend, but you would pay for the cost of the home inspection and any termite inspections. Otherwise your only cost that you have would be the cost of recording the deed.
You would need to look at the contract closely to make sure that there’s no closing fee by the title agent when you look at the contract. If you obtain a mortgage or go get a mortgage from an institutional lender, you are looking at probably spending a couple of thousand dollars with the lender in order to pay their processing fees and their appraisal fees and various costs and charges including the documentary stamps and intangible tax on the mortgage.
It is going to cost you at least a couple of thousand dollars to go through the financial lender. If you have an owner financing; meaning the seller is financing the property for you, you would still have documentary stamps and intangible tax on the note and mortgage which is $5.50 per $1000 that you would have and some additional recording costs and possibly closing fees and title insurance.
You save a substantial amount of money if you pay cash at closing versus obtaining a mortgage particularly from an institutional lender.
If you have any questions about that give me a call at 727-847-2288.