Buying A Home From A Family Member? Make Sure You Do These Three Things

12 April 2016
 Categories: Real Estate, Blog

If you are buying your home from one of your family members, there are things you need to make sure you do before you start applying for a home mortgage. This will ensure the sale goes smoothly for you and your family member so you can move into your new home much quicker.

Obtain Mortgage Loan Statements

You need to ask your family member to give you their current mortgage loan statements. You need to make sure they are up to date with them, and that they are not behind on any payments. If so, this would cause big problems for you, and you would not likely get approved for your loan.  If they do not have this information, ask them to get it from their lending institution.

Hire a Real Estate Agent

If you plan to purchase the home on your own to save some money, you may want to think twice about it. A real estate agent can walk through the homes for sale to see if any repairs need to be made. They may see things that you would not. You could require that your family member make these repairs before you buy the home, or sell it to you at a cheaper price. There is also a lot of paperwork involved with buying a home and it can become very confusing. A real estate agent can take care of all this for you, and ensure everything is done properly. They can also negotiate a deal for you so you can purchase the home at the best price.

Hire a Real Estate Lawyer

A real estate lawyer can ensure all needed inspections are done, as well as you have the documentation that you need, and if there any errors that would cause problems with the sale. The lawyer can also address any liens by doing a title search. This will make sure the home has no judgments or liens against it. This will reveal if your family member has the right to sell their home.  For example, the title search may reveal that your family member has to pay outstanding court judgements or liens before they can sell their home legally.

Buying a new home can be stressful, even if you are buying it from a family member. Following these tips will take some of this stress off of you, and you will save a lot of time and money.