For sale by owner question. - Posted by otoole77

Posted by diana on April 25, 2002 at 19:23:14:

I agree the title company and mortgage broker take care of everythin. I have bought 4 fsbo in the last year. After I get the purchase agreement signed I go to the mortgage broker and the rest is handled by them and the title company. You just sit back and wait for them to set the closing date. Piece of cake.

For sale by owner question. - Posted by otoole77

Posted by otoole77 on April 25, 2002 at 12:18:58:

Hi, I am about ready to purchase my 1st (of hopefully many) homes. It is for sale by owner and actually my girlfriends uncle. I am semi lost as to all the steps I need to take to go through with the deal. We have a price that we both agree upon and I have been pre-approved for a loan. What is the next step I need to take? Is there a website that can give me all these answers? Will I need to get a lawyer involved during this process? Thanks for any comments or suggestions.

Re: For sale by owner question. - Posted by Jim FL

Posted by Jim FL on April 25, 2002 at 16:51:45:

Since you already have an offer written up and accepted, the next step is to make sure your funding is in place.
Go to the lender or mortgage broker where you are approved with the contract in hand.
Call around and find an attorney who handles RE closings and give them the contract as well. (leave a COPY with the mortgage broker.)
Tell the attorney to set up a close and give them the contact info for the lender who is making your loan.
The attny will prepare the docs, order title, and then call you when final funding is in place, title is clear and closing is set.
While waiting, stay on top of things by calling the lender and the attny on a regular basis.
Take the bull by the horns and get the deal closed.

Any questions you have regarding the process should be able to be answered by the attny you hire.
I’ve paid attorney’s anywhere from $200 to $600 per closing, well worth it to make sure things are done right.
Especially your first time out.

Good luck,
Jim FL

Re: For sale by owner question. - Posted by wpage

Posted by wpage on April 25, 2002 at 14:01:20:

otoole77 If you have not already done so you should write a formal offer to purchase outlining all the details of the offer including price, occupancy date, inclusions in the sale and exclusions, date limit for completing the transaction, etc. Once the offer is written you will take a copy of the offer back to your bank to get a final approval of the loan on this property. Once the loan is approved find an attorney to complete the final paper work. You must also arrange for an insurance policy to cover the home. good luck

Re: For sale by owner question. - Posted by Rob

Posted by Rob on April 25, 2002 at 13:49:58:

I am no expert, but I know that you have a couple of choices. You can get a real estate agent to do all the legal stuff, or you could hire an attorney. Real Estate agants charge about 6%. Attorneys charge maybe 1500-2000 bones.
If you opt to get an attorney, make sure you hire someone who does these types of contracts regularly. In fact this web site has an article about hiring and qualifying attorneys for your benefit.
Good luck

Re: For sale by owner question. - Posted by otoole77

Posted by otoole77 on April 25, 2002 at 14:29:49:

Thanks for the input, We do have an offer in writing with all the provisions and dates. So I guess my next step is to go get the mortgage. I have seen kits in Office Depot or Staples that are Buy or Sell your home kit, which I assume has all the forms needed. Would I be better off going through a lawyer or buying the kit and saving some money?

Agent-attorney? - Posted by Brent_IL

Posted by Brent_IL on April 25, 2002 at 22:39:37:

For the record, never, ever let a real estate agent “do all the legal stuff” on any RE deal. RE agents take a 30-45 hour course that covers the theory of real estate law. No contract law at all.

Even a lawyer who barely passed the RE law course at law school would know how to look up what you require. Legal fundamentals may remain the same, but case law often changes the necessary references.

Get a good RE attorney; pay the fee; ask him or her to explain things in detail; and let the lawyer “do all the legal stuff.”

Hassle-avoidance, you see.

Re: For sale by owner question. - Posted by wpage

Posted by wpage on April 25, 2002 at 15:23:47:

A lawyer who defends himself in court has a fool for a lawyer. I think that is how the saying Since you are doing this for the first time it might be wise to spend a bit of money to do it right without worry.A legal mistake might cost you more in the end. Once you start buying other properties you may or may not need a lawyer. It can depend perhaps where you live and how knowledgeable you become in the process.

Re: For sale by owner question. - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on April 25, 2002 at 16:17:41:

And since it is his first time, and a girlfriend’s uncle, dotting the I’s and crossing the T’s will be very important. Keep business as business.

Re: For sale by owner question. - Posted by Larry In.

Posted by Larry In. on April 25, 2002 at 17:32:20:

If you take the purchase agreement to a title Co. ,they will do title work and process the purchase agreement terms and conditions for a more reasonable fee probably. And you don’t pay out till closing. They also insure their closings!!! Good luck