Agent

Pros and cons of buying real estate for all cash

How to avoid a financial mess

DEAR BOB: My townhouse is worth about $300,000. My mortgage balance is around $46,000. I believe I can buy a small house for under $200,000 in Arizona. Does it make sense to buy the new house with no mortgage? What if I find that house before I sell my current home? – Judith E. DEAR JUDITH: If you commit to buying a $200,000 house in Arizona for all-cash before selling your current home, you might be in financial hot water unless you have $200,000 spare cash. Purchase Bob Bruss reports online. Instead, I suggest you include a mortgage contingency clause in your purchase offer for a 75 percent or 80 percent mortgage just in case your townhouse doesn't sell as quickly as you anticipate and for as much money. More important, I recommend you don't commit to paying all-cash for a home in a new area where you are not currently living. It just isn't smart to put all your eggs in one basket, especially if you are unfamiliar with the community. Maybe you won't like the famous Arizo...

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