What Is the Procedure for Closing a for Sale by Owner House Sale?
Some homeowners choose to market and sell their home without the use of a realtor. The process for buying and closing on a for sale by owner home is not difficult, but requires help from professionals, such as an inspector, an appraiser and an attorney.
Other People Are Reading
-
Purchase Agreement
-
Compose a purchase agreement when buying a for sale by owner home. Include the names of the buyers and sellers and the property address. Also, this should list the terms, such as price, earnest money, closing date and contingencies. The purchase agreement is used as a map for closing a for sale by owner home. Consult a professional appraiser to make sure you are not paying over market value for the home. Also, consult a lawyer to help you write the purchase agreement.
Financing
-
Obtain financing to purchase a for sale by owner home by contacting lenders and comparing interest rates. Choose a lender and complete a loan application. Provide the lender with a copy of the purchase agreement along with the documentation required for a loan, such as bank statements, employment verification, tax returns and income statements.
-
Inspections
-
The lender requires specific inspections before it will provide a loan on a for sale by owner home. These include an appraisal and a pest inspection to check for mold and termites. You choose the companies to perform the inspections and receive a report and then provide them to your lender.
Closing
-
Follow the guidance of your loan officer for closing. Generally, a title company or an attorney handles for sale by owner home closings. The lender requires a title search before closing, which benefits all parties by ensuring no liens are on the property. Complete the purchase by signing the loan documents and receiving a copy of the deed in your name.
-
References
Resources
- Photo Credit for sale by owner image by dead_account from Fotolia.com
