Yes, you can buy a house with physical money. There is no law that prohibits a real estate transaction in cash. For the record, when people say they buy a house with cash, it means that they are buying a home without using a loan. Yes, technically, you can take a briefcase full of cash to the closing table and use it to purchase a house.
Although there are no laws prohibiting a physical cash real estate transaction, there are some obstacles to consider. Buying a home with cash is much easier than using a loan. You don't have to wait for an inspection, evaluation, or subscription. Even though an inspection isn't required when you buy a home with cash, it's still wise to get one to make sure your new home doesn't come with costly surprise repairs.
Home sellers also often favor cash buyers, as they don't have to deal with loan terms. This means their cash offer is more likely to be accepted. You can use a personal check if you choose to pay cash for your home with your checking account. Just make sure there's enough money in the account to cover all the costs.
However, for buyers, there is a significant difference between paying cash for a home and seeking financing through a mortgage company. While there may be points in the negotiation process when having the cards close by makes sense, in a competitive market, if you really want a property, whether as an investment or as a home, being clear from the start that you are paying cash is probably the way to go. And the logistics of paying for a large purchase with physical money can also be tricky. An experienced real estate agent can help you create more attractive offers that are accepted, shortening your housing search process. Remember, you can always buy the house with cash, finance all or part of it with today's remarkably low mortgage rates, and then put that money to work somewhere else.
Paying a mortgage can also provide tax benefits for homeowners who itemize deductions rather than taking the standard deduction. Even so, the advantages of paying for a house with cash may be enough for people to buy their home with cash. When you finance a home purchase, your lender charges you for services that add to the total amount you pay at closing. However, whether you saved money in a bank account or real physical cash to buy a home, things can get complicated. Everything will be fine, there is nothing illegal about paying for a house in cash, but it can be an inconvenience for sellers.
But, depending on the state of the stock market, Semrad also points out that saving on mortgage interest by paying cash might not be financially prudent. Homes are fairly illiquid assets, so if you spend a large proportion of your liquid assets on the house, it's not easy to find cash for other things in your life. This is an interesting question because this person is talking about buying a house with real and physical money. While buying a home with physical money is generally not recommended, there are alternatives if you have the money to pay for a home directly.