If you’re looking to buy a house in NY or anywhere in the area, then you might be considering seller financing or owner financing as an option. However, do you know how to go about getting it?
Make sure you read this blog post all the way through to help you know the process for owner financing in NY.
Buying a house can be costly, which is why many buyers go to the bank to get a mortgage. But a bank mortgage isn’t right for everyone.
If you want to buy a house but don’t want to go to the bank, what can you do? Seller financing is one option – it’s where the seller “sells” you the house but instead of paying the seller one lump sum payment (through a mortgage from a bank) you simply pay the seller monthly payments (like mortgage payments) until you’ve paid the full purchase price.
To you, it’s just like a mortgage; to the seller, it’s a regular amount of money every month. It can be win/win. But what is the process for owner financing in NY?
Here is our recommended process:
Step 1. Do Your Homework
Read up on owner financing and ask questions of people who know about it. Learn everything you can about owner financing, including your local laws. Every state, county, and city may have its own regulations about mortgages, real estate loans, owner financing, and legal agreements. You should always consult with a lawyer.
Step 2. Ask Sellers
While you’re looking at houses to buy, ask sellers if they’d be interested in an owner financing scenario. Often, people will say no. However, you may find sellers who are interested (or at least interested in learning more).
Step 3. Be Prepared
You will probably encounter sellers who might be interested but don’t know a lot about seller financing, so be prepared to explain it to them and help them understand why they may want to consider it. Be prepared to have that conversation because not everybody knows what seller financing is.
Step 4. Keep Trying
Chances are, you probably won’t meet a seller who is open to owner financing right away. You might have to ask more than seller, perhaps even more than once. But if you keep trying, you will eventually find someone who will want to do that deal with you.
Step 5. Do The Deal!
When you find a seller who is open to owner financing, create the agreement and buy that property!