How to Buy a Home With a Land Contract

Prospective homeowners can have difficulty being approved for home loans, making it impossible to buy their dream homes. Land contracts may be the answer to their dreams. Instead of involving a bank, the seller finances the loan, allowing the buyer to purchase the home without a pristine credit history.

Difficulty: Moderate

Instructions

1. Locate a house to purchase. It is preferable to find a house "For Sale by Owner" (FSBO). These houses are not represented by realtors, saving the buyer from paying a commission.

2. Enlist the help of a real estate agent who endorses the concept of "creative financing." The terminology and structure of the land contract differs from a normal mortgage, so be sure to use an agent that has written land contracts in the past. These individuals are not licensed but have connections that will be able to assist in getting the best deal for their clients. There may be a fee for services, but it will be considerably cheaper than a realtor's commission.

3. Write an offer with the help of the real estate agent. He will be able to identify the market price of the property and advise the best provisions to include in the land contract.

4. Compromise with the seller to develop a land contract that is beneficial to both parties. The seller may offer some great options to sell the house as soon as possible.

5. File the land contract at the county Registrar of Deeds office. This will solidify the legality of the contract, making it a matter of public record.

Tips & Warnings

• Anytime a contract is being negotiated, it is a good idea to have a lawyer look it over. This will protect the buyer and the seller from possible legal issues during the life of the land contract.

[AustinNotary]

on 11/8/2008 Thanks I really enjoyed the topic you wrote about.

Jenette
www.mobileaustinnotary.com
"The Nicest Notaries in Texas, That Go To You 24/7"