The Best Method of Payment to Get the Property You’ve Always Wanted


When you are searching for a property in US, there are lots of listed properties in the website that you may choose. It varies depending on your preferences. If you have a big family , you may choose from a house that has 3 beds / 2 baths  or 5 beds / 4 baths, with or without pool, with built in fireplace or built in centralized heater, new design or classic design , with or without characters, Open or close  concept of the house and many more.

After you picked the best home that suits with your family’s need, there is one important and main qualification for you to get the property that you’ve always wanted – the purchasing of the house itself.

When you are already decide what to buy, you can get it via cash or various financing methods such as FHA Loan, VA Loan, Conventional / Bank Loan.

Let us dive on the deeper part of this discussion. In reality, most of the buyer of a property uses loan or mortgage. The truth is that paying thru cash or paying using a loan or mortgage has advantages and disadvantages.

DOLLARS2Via Cash, biggest advantage is that you do not owe anything to anyone. You will move in to your new house without worrying of a monthly mortgage or whatsoever. But for you to buy a property in cash, you must be very ready and have extra money on your pocket for any unforeseen renovations that may occur on your new property. Most common problems are mold and water damage issue, especially those houses that are old already.

mortgageOn the other hand, purchasing a property using FHA Loan, VA Loan or Conventional / Bank Loan has the advantage of minimal upfront payment depending on the type of loan you’re going to use so basically you have remaining budget for renovations and fixes on your new property if there is. Monthly mortgage will depend on the amount that you pay upfront. Meaning, if you pay less your monthly mortgage is a little bit higher and the time duration will be longer. But if you pay more than the required upfront payment, then your monthly mortgage is low. Meanwhile, the disadvantage for using a financing method (FHA Loan, VA Loan or Conventional / Bank Loan ) is that every month it adds up to your monthly bills and expenses. So for those who are not so ready meaning, without savings on their account, better to start it right now.

Now to answer the question regarding in what is the best mode of payment for you to be able to get your Dream Property, the answer is is it depends on your financial status today. Purchasing a property using cash or any financing method such as FHA Loan, VA Loan, Conventional / Bank Loan has advantages and disadvantages. It matters on how you will write fit the situation on the method of payment itself.