A cash purchase is just as it sounds. There is no financing involved from a traditional lender. When writing a contract is written, there are not as many safeguards for the buyer. A lender will require an appraisal to determine market value. A lender will typically require a termite letter to prove the home is free of active termites. If you decide to purchase a home using cash, make sure to write those safeguards into your offer to purchase.