Home Buying For Sale By Owner: How It Should Be Done
If you’ve been thinking about buying homes for sale by owner for quite some time, use the steps I’m going to list in this article to help you get through the process right.
1. Set a budget
You can use mortgage and EMI calculators to determine the price you can afford for homes for sale right now. You should never go beyond your finances when it comes to home loans because mortgages are often long-term liabilities and you won’t be able to predict your ability to pay in the future.
2. Pre-Approval For Finance
Making decisions that involve a lot of money should never be done without a good foundation. You must first get pre-approved financing from a financial institution, such as a bank, before you can go shopping for a good home to buy.
3. Start looking for a good house
You can take a look at the local home listings found in the newspapers for your area or the area where you want to buy a home. You can also search different real estate websites, specifically those that have FSBO listings.
4. Establish a line of communication with the owner
Calling or emailing the seller to tell them you’re interested in their home is a good thing to do. Ask questions and set up a time to view the property in person.
5. Home valuation analysis
If you don’t want to pay for an accurate appraisal report, you can make one yourself by finding out what rates are going on in the area and locality where the property is located. Take a look at similar homes and do a comparative analysis.
6. Get a lawyer
This guy will really be a great help when it comes to giving tips and advice on a good deal, as well as the legal aspects involved in the process.
7. Dole out a polite offer
When you make an offer, make sure it’s not too high or too low based on the research you’ve done. Your offer must be legitimate. Do it in written reform.
8. Explain your banking agreement
If the seller thinks your offer is a good one, go to your bank right away and lock in your mortgage rate. There is usually a 30-60 day lock-in period when it comes to mortgage products and this will be long enough for you to settle the contract details.
9. Get a good home inspector
Getting a home inspector to do a thorough inspection of the home you are buying is a good thing to do. This professional will help you look for structural problems and other problems that will cause you a lot of trouble. If they are found, you can renegotiate your offer.
10. Close the deal
You should keep your paperwork as simple as possible and it should be in line with the real estate laws in your area. Make sure that both your lawyer and your mortgage lender are part of this process and help you with any kind of failure related to the contract. Finally, sign the contract to seal the deal.