Advice Topics
- Buying (153)
- Selling (179)
- Renting (38)
- Market News & Trends (11)
- Finance & Legal Info (79)
- Tips & Advice (85)
- Working With an Agent (51)
- Marketing (4)
- Investing (16)
- Affordable Housing (13)
- Green Housing (2)
- Schools (1)
- Remodeling (29)
- International Real Estate (8)
- Terms & Definitions (23)
- Home Loans (10)
Top Contributors (View All)
Find a Top Real Estate Agent Near You
Is a loan from a seller a bad idea?
Is a loan from a seller a bad idea? The seller is offering a loan as part of the deal. The interest rate is below what I could get from a bank, but I'm worried about a shady deal.
Asked By Meri | San Diego, CA | 59 views | Finance Legal Info | 1 month ago
Answer(1)
Julianne Clark / Your Lowcountry Realtor
Charter One Realty
Seller financing was common practice in the past. My advice is to have an attorney draw up or review any contract the Seller is using -- so that you are fully aware of the terms and conditions you are accepting. Many times Seller financing is for a limited time -- under 5 years. After which you will need to get traditional mortgage. You negotiation is at the initial purchase. Money that you put down may or may not be refundable if for some reason at the end of the term you are not able to get traditional financing. Have your inspections done before signing and maybe even pay for an appraisal to assess current value of home. If for some reason home values decrease -- you will be locked into the price you accepted when you "bought" the home using the Sellers as your Lender. There are situation that Seller financing is beneficial. Make sure you are in that kind of situation. Traditional financing will have a title search and appraisal as part of the purchase. Your taxes and property insurance can be included in your monthly payment to aid in budgeting and it will remain pretty consistent (fluxuations are increases in property taxes and insurance rate) for the life of the loan or until you refinance. There is a sense of security in using a lender or bank to hold the loan for you home purchase.
- 2 weeks ago
Helpful (0)
Unhelpful (0)
Are you ready to find a top agent near you?
Browse profiles of the highest ranked agents in your area and find one that meets your specific needs.
Related Questions
-
If I sell my home, will my boyfriend receive part of the sale?
I wanted some clarification before deciding to put my home on the market. My boyfriend and I purchased a home together several years ago. We split up so he signed a quitclaim deed but is obviously still on the loan. If I want to sell my home that I have been making payments on myself for the last 8 years. Does he need to sign anything and would he be entitled to any of the sale money?
- Asked by Eileen K.
- 918 views
- Finance & Legal Info
- 3 years ago
-
Can the new owner of the rental property I live in kick me out?
The rental property that I'm living in now was sold to a new owner. The new owner wants to kick me out, remodel the unit, and re-rent the unit for a higher price. Is that legal?
- Asked by Mario Z.
- Los Angeles, CA
- 834 views
- Finance & Legal Info
- 3 years ago