Homebuyers purchasing a home with a contract for deed are advised to take the following steps to minimize their risk and to strengthen their chances of successful long-term home ownership.
Meet with Steve Vennemann BoardWalk Premier Realty INC. . Counselors can help you determine several things. 1st your information to see if you qualify for a conventional or FHA mortgage. If you do, We can then refer you to a loan officer at a bank for conventional Fha or Va financing. The lender can provide you with a copy of your credit report, which will identify any barriers you need to overcome in order to qualify for a mortgage loan within the time frame of the contract for deed.
Have a plan in place on how you are going to pay for the balloon payment when it comes due.
Working with an experienced Real Estate Broker BoardWalk Premier Realty INC who you trust as your “buyer’s agent”.We will look out for your interest and negotiate on your behalf. We will be able to assist you with executing the purchase agreement and contract for deed addendum, preparing a market analysis, negotiating a purchase price, contract terms and repair items, setting up the closing and ordering the title work. http://www.mnlakehomescontractfordeed.com
Know the seller’s position on extending the contract. It is important to understand the seller’s position on extending the contract before you sign. Many private sellers have other obligations that prevent them from being able to renegotiate the contract. Unless a right to extend is written into the contract, the seller is free to decline an extension request.
Ensure the interest rate does not exceed the maximum allowed by law by calling the Department of Commerce at 651-297-7053 to get a recorded message for the current month’s maximum rate.
Make sure your Realtor is also familiar with the contract for deeds not many realtors work with cd financing. It is very important.
Have the property inspected by a professional inspector; make sure any purchase agreement for the contract for deed is contingent on a 3rd party professional property in spection even if a“Truth in Sale of Housing”disclosure report is required by the local municipality. A Truth in Sale of Housing report will only list housing code violations. A professional inspection will alert you to major repairs that may be needed in the future that are not necessarily code violations. They can also give you cost estimates for the repairs that can help you negotiate a lower sale price or require that the re- pairs be completed as apart of the purchase agreement.
Purchase title insurance and consider having a title company conduct the closing: The title company will search for any outstanding mortgage or mechanics liens and if they close the contract for deed that will ensure the contract is properly recorded. If there are any issues, the title company will alert you to them and will let you know what items need to be remedied. If issues arise, consult an attorney. A title company cannot provide legal advice.
Record the signed and notarized contract for deed. State law requires the buyer to record the contract (within four months of signing the contract) in the office of the county recorder or registrar of titles in the county in which the property is located. Recording is important to protect your rights to the property and to establish priority over liens that could be placed on the property. In order to be able to record the contract, the contract must include the legal description of the property and buyer and seller must sign the contract before a notary public. Past due property taxes must be paid
Purchase homeowners insurance: Set up a monthly savings plan to ensure you have the funds for next year’s policy
Create a monthly savings plan to pay for unforeseen repairs and homeowners insurance, as well as real estate taxes if not included in your payment.
BoadWalk Premier Realty INC
Contract for deed Broker