Posted on: 29 March 2017
Buying a home is a dream many people have, yet it can be something that is hard to achieve for many. If you would love to buy a home but cannot get a loan to do so, you could look for someone who is willing to sell their house to you on contract. This is a great alternative method for buying a home, and here are three steps you will need to take to make this happen.
Look for sellers offering this method
Finding a seller that is willing to do this will be your first and main step, and you can talk to a real estate agent about this if you need help. A person willing to do this must be willing to keep the loan on the house in his or her name during your contract period, and there are not a great deal of sellers willing to do this.
Find out what it would cost you
Once you locate a seller that is willing to do this that owns a house you would like to buy, you should talk to the seller about the terms. This will include the following details:
- The price for the house
- The amount of the monthly payments you must make
- The length of time the contract is for
- How principle and interest work on the loan
- What you would be responsible to pay for
- How much the down payment will be
These are all important factors that must be discussed and included in the contract created for the deal. The seller is likely to visit a real estate attorney for help drawing up the contract and making sure it contains all the necessary information.
Take the necessary steps to protect yourself
You might want to visit an attorney too, just to have him or her look over the contract before you agree to it. The attorney can also help you take additional steps to protect yourself, and one of these will be to perform a title search on the property to make sure it does not have any liens on it. Another good step may be to get an appraisal of the house to make sure you are not paying too much for it.
These are the main steps you will need to take to buy a house on contract. If you are interested in doing this, talk to a real estate agent to help you locate a home for sale with this method.Share