Buying a house is an expensive proposition in Austin, Texas. However, if you are still looking into options to purchase a home without having to deal with loan approvals, try seller financing.
Property prices are soaring high and it does not seem to go down in the near future. This makes real estate one of the best investment options in the country. However, to own a property or a house you need cash in hand which you will need to deposit to the owner of the house. How do you do this if you do not have enough cash in your bank or house? You can either take a house loan from one of the banks or loan it from the seller himself. The latter form of loan is known as seller financing.
In seller financing option, the loan is provided by the seller and the buyer makes a small down payment, and thereon makes monthly payments over a specified time. For a seller this is a guaranteed investment while for the purchaser it reduces the hassle of bank loans which can be generally more expensive and the process is long and tedious. (See Owner Finance Buyer Qualifications.)
Seller Financing in Austin, Texas: Points to Consider
It is also very beneficial for owners who want to sell properties faster. On the other hand, they get to negotiate the interest rate which is favorable for them. It also provides tax benefits for the seller and the buyer. Though such loans are more flexible in nature, this is a form of loan and potential buyers should review the documents and agreement papers before closing the deal. Sellers should also look into the proof of employment and the financial history of the buyers before loaning them the house.
In Austin, Texas, a seller needs to get the mortgage updated and recorded as per the requirements of the state. Sellers of properties are required to work alongside title insurance companies to work on and purchase a title search and title insurance for their mortgage. In Austin, Texas, a minimal cost is required to record a mortgage. The cost usually features administrative fee and a basic structure fee for the total number of documents involved. The prices may vary according to the property size.
If you’re a seller from Austin, Texas, documentation is perhaps the least of your worries because most of it is done by property attorneys in the state. The hurdle is finding a buyer who is interested in the house and help from a reputed real estate body. Forte Properties will help you put together offers, negotiate the deal, and even help set up your homeowners insurance to ensure it’s done correctly for seller financing.
If you are buyer in Austin, remember that in most cases, sellers usually prefer to have cash before you can move into the house. So, be ready with the initial amount before you close the deal but as compared to bank loans, this initial deposit can be negotiated with the seller. Typically home sellers look for around 10% of the purchase price as an initial down payment.
With the increase in owner financing in the region, the Texas Association of Realtors have introduced the “Seller Financing Addendum”. Hence, to sell and buy properties using this option, financing can be consulted beforehand with Forte Properties’ experts who have studied the market alongside the Addendum and get you a deal to last a lifetime.