Important Tips when buying a property contract for deed.
Here are some important tips if you are considering buying a home with a contract for deed.
Apply for a conventional or FHA mortgage
We have lenders who may get you qualified for a conventional or FHA mortgage loan from a bank, credit union or other licensed mortgage lender. It will save you money on the rate but the closing costs will be alot higher. The plus is we can get the Seller in some cases to pay for the closing costs or finance them in the mortgage. When the buyer gets a mortgage the banks usually finance the house for 15- 30 years. Where is a contract for deed the seller finances the house for 3-5 years.
A contract for deed is a complex arrangement with many legal and financial risks. Consult with a lawyer or BoardWalk Premier Realty Inc. Steve Vennemann can you make the right decision.
Get an professional inspection
An inspection will tell you about the property’s condition and what repairs are needed. Also check with the local housing inspection office about any reported code violations that require repairs.
Make sure you understand the contract and your financial responsibilities
Review the monthly payment, property tax, insurance and maintenance/repair requirements you are accepting. What interest rate are you paying? How much is the balloon payment and when is it due? What are the terms under which the seller can cancel the contract and evict you?
Research the property title
Make sure the seller really owns the property.By using a title company or lawyer they will do the title search for you. Check with a title agent or the county property office to find out if there is a mortgage or other liens on the property. A title agent can also ensure the contract is properly recorded with the county, as required by state law. This will also help prove your possession of the property and protect you from post-contract encumbrances placed on the property by the seller.
- BoardWalk Premier Realty INC
- Steve Vennemann 651-334-8312 Broker/Contract for deed Specialist.
- View all contract for deed listings by county by clicking on the county button you wish to live in..
- Contract for deeds usually want 10% down of the sale price of the house to do a cd. Credit usually isnt an issue.