About buying a house and paying for it?

The house I’ve been living in I just found out that the guy wants to sell it and is offering it to me but he’s not sure if he wants to do owner financing if he doesn’t want to I’m just curious as to how a bank works with buying a house. Would it be that the bank pays him the amount I need the loan for and then I pay the bank every month just like owner financing for the most part except I pay the bank and he get his money right away? The guy just want’s to get rid of the house and has told me he would sell it to me and only me for 300k and where I live a 2 bedroom house with no yard cost 400k. I live in a 4 bedroom two bath house with a 2 bedroom guest house on about 2 acres of land. To buy this hosue with out the guy knowing me could cost close to a million dollars. Would getting a loan from the bank give him the full amount right away?

5 Responses to “About buying a house and paying for it?”

  1. Insurance Biz CT Says:

    You/ve got the basics right. I would suggest that you contact a mortgage broker. They will give you the most options when it comes to financing. If you qualify and the property value is greater than the amount you want to finance, you would probably be able to finance 100% of the cost. At the closing (the sale of the house), the owner would get a check for the price of the house, less any fees. You would then be responsible to pay the bank monthly for the mortgage.

    It sounds like you are sitting on a great piece of property. Good luck.

  2. sudi p Says:

    s i did

  3. KitKat Says:

    You would need to get pre-approved by a mortgage company in order to get a loan. He gets his money at the closing when it becomes all legal that he is transferring the property to you.

  4. Jackson Says:

    I would be a little suspicious. He wants to sell you a million dollar house for $300K? You are either incredibly lucky or about to be scammed.

    If he is selling it to you you need a contract, appraisal, financing.

    I would start by getting everything in writing, then get pre approved with a lending institution. Part of that process is getting an appraisal.

    He will get the money on closing of the loan and you will pay the lender as agreed.

    I don’t mean to sound negative but in my experience if something sounds too good to be true it usually isn’t– either too good or true.

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  5. Pure Genius Says:

    you will want to get preapproved by a mortgage company.. i would also look into how much the home is really worth.. he may be selling it for more than its worth.. i would look into possibly a realtor and seek their opinion.. they usually know all this fun stuff…i found a site with some buyer tips
    http://www.barryloomis.com/RealEstateTips/HomeBuying/default.aspx

    hope it helps! Good Luck!