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How to buy a house with a land contract

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Often, those people who are going to buy a house for the first time are hampered by the policies that the lenders have. Using a land contract removes most of the obstacles that banks put in your way. Lenders usually ask for advanced payments and verifiable tax requirements, but just because you do not meet the “profile” does not mean you cannot buy a house.

Steps

Find a good real estate agent who understands your need to look for “creative financing” methods. You should not only understand it, but it should also be able to help you in your search. Plots to sale in Multan DHA 5 Marla without using a bank as a means of financing is more difficult, but not impossible.

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Find a house that you like, preferably one that has been in the market for several months. Do not worry if the ad does not indicate that the seller will handle the financing on your own.

Make an offer close to the price, if it is not for the entire list price. This is where you must tell the seller that your financial future is bright but that you do not meet the bank’s requirements at the moment. You can make payments with interest and even reduce the amount of the principal in the near future (3 to 5 years) but you simply do not have the money to make the advance payment.

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Have your agent write an offer stating that you are going to make a minimum advance payment (everything you have, but at least as much) directly to the seller and that you are going to make regular (monthly) payments with a slightly higher interest rate than the one The seller could get in a bank for the land contract. You must make periodic payments to reduce the principal as much as you can and you must also finish paying the rest of the contract in a short period (between 3 and 5 years).

You will be surprised by the seller’s will to help you. Sure, some sellers need to get the money quickly when they sell and therefore cannot sell through a land contract.

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