Is it better to choose to buy a house with full payment or with a loan? This is a problem that many home buyers struggle with when buying a house. In order to solve this problem, we need to compare these two home purchase payment methods in order to make a more rational choice.

Today we will learn more about the pros and cons of buying a house with full payment and buying a house with a loan, to see which method is more suitable for you, and to achieve an optimal allocation of funds.

1. Advantages of buying a house with full payment

Advantages 1. Save money and get great discounts

Although the first payment for buying a house with full payment is more, it will be more expensive from now on. Judging from the total number of houses purchased, various handling fees, bank interest, etc. can be waived. And because it is a one-time payment, you can bargain with the developer and further save the purchase price.

Advantage 2. Simple process

The process of buying a house with full payment is simple. You only need to sign a house purchase contract with the developer or seller. There is no need to go through the process and sign a contract with the bank. So it saves time and convenience.

Advantage 3. Easy to sell

From the perspective of selling a house, it is more convenient to sell the house after paying the full price without being subject to bank loans. Even if you don't want to sell, you can still get a mortgage from a bank when you encounter financial difficulties.

Advantage 4. It is easier psychologically

Buying a house with full payment does not have the pressure of repaying the loan. You don’t have to worry about the mortgage every month, and you don’t have to worry about the loan repayment. Your life will not be disrupted by mortgage loans, and you can calmly arrange your future financial plans.

2. Disadvantages of buying a house with full payment

Disadvantage 1. High financial pressure

Buying a house with full payment requires the buyer to come up with all the purchase money at once. This is not something that ordinary families can do. Most families have to endure a lot of pressure and hardship in the early stage in order to get this money together. And large capital outlays may affect homebuyers' quality of life and other plans.

Disadvantage 2. Large variables

Many pre-sale properties now have the problem of incomplete five certificates. Although the sales staff promised to complete the procedures within a certain period of time, for the full payment For home buyers, it is full of unknown variables, which may lead to risks in purchasing a home.

3. Advantages of buying a house with a loan

Advantages 1. The risk is relatively small

Buying a house with a loan means borrowing money from a bank to buy a house, so the quality of real estate projects depends on the bank. Naturally, in addition to reviewing the home buyer's own situation, the bank will also help you review the developer and check for you. Naturally, the risk is relatively small.

Advantage 2. Low initial investment

You can buy your own house without spending a lot of money immediately, which can effectively alleviate the problem of insufficient funds for home buyers.

4. Disadvantages of buying a house with a loan

Disadvantage 1. Heavy debt

If you buy a house with a loan, the home buyer will need to bear heavy debt, which is very difficult for anyone. It's not easy for anyone. You may need to calculate your living income and expenses every day to ensure that every expense is not overspended, and be cautious about the use of funds, in case the funds exceed the budget and delay the loan repayment.

Disadvantage 2. The process is cumbersome

The procedures for buying a house with a loan are more cumbersome than the procedures for buying a house in full. Provident fund loans are more cumbersome than commercial loans, and combination loans are more cumbersome than provident fund loans. If there is a situation such as a shortage of bank loan quotas, the approval process will be more stringent, the approval process will be slowed down, and the process and timeliness will be further lengthened.