Im wanting to buy a house (first time) and i have the option to go thru a bank or do owner financing which isv?
which is the better move now of course both my parents are willing to cosign for me but when they bought there house they paid cash so none of us knows what we are doing some advise pleaaseee thanks
- 1 decade agoFavorite Answer
Go get yourself a real estate agent and have him go over how the process works. A buyer doesn't pay for their agent. The seller does. So, there's no downside to consulting with a real estate agent, but plenty of upside, especially if you admittedly don't know what you're doing.
You should also contact a mortgage broker to find out the difference between seller financing and lender financing. You can also get prequalified for a loan to find out what you and your parents can afford to buy.
Many mortgage brokers also do what's called a no-cost loan. When they secure the loan for you, they get a commission of several thousand dollars. They then use part of that commission to pay your loan costs. So, that would not be an advantage of seller financing.
- DonLv 51 decade ago
If you do owner financing you will not have to pay closing costs and all the other bull the bank will put you through. It will probably cost less than $1000 total to get all of the closing papers done by an attorney.
I think as long as you have everything done through an attorney then owner financing would be the best way to go.
- 1 decade ago
Seek legal advice from an attorney, not a real estate agent, message board or mortgage broker. Once you,ve done that then just compare rates and terms. A mortgage is a mortgage. But get sound legal advice all the way thru.
- golferwhoworksLv 71 decade ago
bank financing is best. The reason is what if the owner who is doing his own financing on the home has a note on it and forecloses. YOU LOOSE! or he or she gets sued and a judgment is rendered and the house is attached -YOU LOOSE AGAIN. if a bank goes under your loan will get service by another lender that is the worst that could happen there
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- kemperkLv 71 decade ago
lease option seems your best bet.Source(s): RE broker