Buying Homes for Sale by Owner: How It Should Be Done

Posted by Robbin K on September 15th, 2016

If you've been thinking of buying homes for sale by owner for quite some time now, make use of the steps that I'm going to enumerate in this article that will help you to go through the process properly.

1. Set a Budget

You can use mortgage and EMI calculators so you can determine the price that you have the capacity to pay for homes for sale as of the moment. You should never go beyond your finances when it comes to housing loans because mortgages are often long term liabilities and you won't be able to predict your ability to pay for such in the future.

2. Prior Approval for Finances

Making decisions that involve a lot of money should never be done without good basis. You should first a prior financing approval from a financial institution such as a bank before you move on to looking for a good house to buy.

3. Start Looking for A good House

You can take a look at the local house listing found in newspapers in your area or the area where you want to buy a house. You can also look at different real estate websites specifically those that have FSBO listings.

4. Set a Communication Line with the Owner

Calling or sending emails to the seller to tell him about you being interested in his house is a good thing to do. Ask questions and set a time to see the property personally.

5. House Valuation Analysis

If you don't want to pay for an accurate valuation report, you can make one on your own by finding out the going rates in the area and locality where the property is located. Take a look at similar houses and perform a comparative analysis.

6. Get an Attorney

This guy will really be of big help when it comes to giving advice and counseling on a good offer as well as the legalities involved in the process.

7. Dish out An Educated Offer

When you give an offer, make sure that it's not too high or too low based on the research that you've done. Your offer should be legitimate. Make it in written reform.

8. Sort out Your Bank Deal

If the seller sees your offer as a good one, go to your bank immediately and lock in your mortgage rate through home loan emi calculator. There's usually a 30 to 60 day lock in period when it comes to mortgage products and this will be enough for you to settle the details of the contract.

9. Get a Good Home Inspector

Getting a home inspector who will perform a thorough inspection of the house that you're going to buy is a good thing to do. This professional will help you to look for structural problems and other issues that will cause you a lot of trouble. If these are found, you can renegotiate your offer.

10. Lock in the Deal

You should keep your paperwork as simple as possible and it should be in line with real estate laws in your area. Make sure that your attorney as well as your mortgage financier is part of this process and that they help you with any type of contract-related glitch. Lastly, sign the contract to seal the deal.

[Source: http://ezinearticles.com/?Buying-Homes-For-Sale-By-Owner:-How-It-Should-Be-Done&id=6487021]