I need advice on paying cash for a new house versus getting a mortgage?

is it better to clear up my credit and apply for a mortgage or just pay cash to have a new home builtI need advice on paying cash for a new house versus getting a mortgage?
Cash! Never finance anything you don't have to.I need advice on paying cash for a new house versus getting a mortgage?
Pardon muh southern accent sweetie....If it would be possible for you to get holt of a piece of land....then you could lay a foundation and frame a house and take a estimation to the bank of the finishing cost then you could get a loan in a new yawk second!
It's better to get a mortgage unless you have so much money that you don't think you will need the money that you pay cash with for the house and by all means clear up your credit or you may not be able to get a mortgage.





My question is why would you have to clear up your credit in the first place if you have enough cash to buy a house with?
ok... if you have debt, clean that up first. Then save up and make sure you have 3-6 months of expenses set aside for emergencies.





Once you have that, you can save for a house. Make as a big a down payment as you can, and if you need to borrow to get it, get a 15 year fixed rate mortgage.





Also- don't listen to the crap about how great it is to have a mortgage because of the tax write-off. You're spending money to the mortgage company so you can avoid paying taxes on that money to the government. A nice donation to a charity would do the same thing.
If you have enough paid cash!
I would never pay cash for a house, you can do more with that equity in the market earning or buying a car, home fix ups or a trip for spending. Imagine all that equity just sitting there not available.





Clear out debt of course, get the mortgage.
You should clear up your credit, regardless of you you pay for your loan.





Find out what kind of mortgage rate you can get, then figure out how much interest you would actually be paying, after you itemize the interest on Schedule A of your taxes and get federal and state taxes back for it -- you'll probably get back 30% or so, depending on your income level.





So if your rate is 6%, then your effective rate is 4.2%. Personally, I'd borrow a billion dollars at that rate if they'd let me, then invest it for profit. So I'd advise you to get a mortgage and dutifully invest the rest (especially by maxing out your 401k and Roth contributions).





And congratulations on having the wherewithall to be able to pay with cash, if that's your choice.





Good luck,





Doug
If you had a paid-for house, would you go borrow 100% of its value to invest in the stock market or to improve your credit score?





It is asking the same thing as your question, but from the opposite angle!
Let me get this straight. You have terrible credit, but enough money to pay cash for a house? I just can't imagine how you could possibility done this short of someone dropping a ton of money in your lap after you messed up.





Anyway to you original question. Taking out a mortgage and paying it down (even at a faster rate the the term says) is going to cost you money, and only you can say if that money is worth rebuilding your credit. And rebuilding your credit is going to take quite some time and you might want to do it in a less expensive way like showing that you can handle say a credit card, by putting stuff on it and paying it off each month.
If you can earn more than you are paying in interest on the morgage than you should get the morgage and invest the money elsewhere, but you have to find out how much your morgage rate will be and then find out how much you think that you could make with investments...