Are you planning to purchase your first home? Sellers will always love it when you buy their property using a cash offer. It makes the entire process faster, easier, and saves on the total expenses of selling a house.  

However, as a home buyer, is a cash offer for a house an ideal choice? Would you instead buy a house using a mortgage loan rather than cash? Today, we’re going to find out. 

Buying a house can be a bit overwhelming. This is particularly true when it comes to the payment option. Basically, you’ve got two options to choose from. Should you pay with a mortgage or pay with cash? Luckily, we’re here to help.  

If you’re searching for Fayette County TN homes for sale, here are the pros and cons of using a cash offer: 


Cash offers come with a lot of advantages to both the buyer and seller. Here are a couple of pros of accepting a cash offer on the property: 

  • You can get a discount from the seller if you use a cash offer. 
  • The house belongs to you immediately. You won’t lose it.  
  • You can tap into home equity if you need to. 
  • It gets rid of the stress associated with mortgage payments.  
  • Avoid the hassle of getting a mortgage.  
  • It lowers all the documentation and paperwork. 
  • Cash offers for houses save money since you won’t have to pay for interest.  
  • You won’t have to go through any credit check since you aren’t dealing with lenders. 
  • It is a faster process. 
  • You can quickly find a house since sellers prefer cash offers. 
  • Sellers are more confident with buyers offering cash. Thus, you can get a good deal.  


Simply because you’ve got the money does not mean you should rush purchasing a house. On a couple of occasions, cash offers might not be an ideal choice if you are purchasing a house. Here are some cons of cash offer: 

  • Your house can lose its value over time. This results in a poor ROI. 
  • You will sacrifice liquidity. 
  • You will lose your financial leverage on the mortgage company. 
  • You sacrifice tax deductions related to mortgage. 
  • It restricts your liquidity since it ties your wealth. It isn’t an excellent option for investors. 
  • It can be expensive to buy a house using a cash offer.  

Difference Between Mortgage and Cash Offers 

There is a major difference between a buyer who buys a house via mortgage and one who pays cash. Here are some of them: 

  • Appraisal 

The mortgage lender orders appraisals. Thus, it won’t be needed if you are buying for cash. A couple of buyers might still want a home appraisal. This is particularly true if you’re an investor who wants a high ROI. 

  • Contingencies 

When purchasing a house for cash, you will not require financial contingency. The reason for this is that it only applies to a mortgage. In addition to that, you might not require a sale contingency. On the other hand, you might require an inspection contingency.