Owner financing is a vastly underused option to purchase a home that can actually be very beneficial to both the buyer and the seller. However, there are very specific procedures which must be followed to obtain this special type of financing. Here is a basic guideline on how to purchase Homes For Sale in Cordova TN using this method.
Hire Experts
The first thing that must be done is assembling the right team of professionals to gather the information needed. These people will consist of the following:
* Appraiser- An appraiser will determine the value of the home. This is needed so that the home is not overvalued, which can inhibit the sale of a home by scaring off potential buyers. Conversely, the home should not be undervalued so that the seller loses out on the money due them. Undervaluing a home can also play havoc with the value of surrounding Homes For Sale in Cordova TN.
* RMLO- Otherwise known as a residential mortgage loan originator, this member of the team will help by giving information to both buyer and seller to help them make an informed decision in regards to lending. They will also help by putting together a loan package that is compliant with all applicable laws.
* Real estate attorney- An attorney experienced in the realm of real estate can put together paperwork protecting the interests of the buyer. This is especially important if the buyer needs to sell the home due to an emergency situation.
Reflect On The Purchase
Know before signing anything that the initial down payment on an owner-financed home will generally be larger than if a bank or mortgage lender was financing the purchase. However, owners tend to be less picky than traditional lending services. There is also the risk of not being able to make balloon payments which are usually part and parcel of owner financed homes. The payments may seem acceptable at first but can become unmanageable if care isn’t taken to prepare for them.
Sign The Papers
If the deal seems like a good one and everyone is on board, it is time to sign the papers and move in. Sit back and relax and know that you now own a home that is all yours with one of the best deals out there.
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