How Do You Buy Real Estate On Contract?
A contract to buy real estate, like any other contract, is a binding agreement that can be enforced in court if necessary. For that reason, you should learn the terms of the agreement and understand how those terms apply to your situation before signing a land contract. Your closing attorney often will draft the contract or review it with you at no additional charge. The following are the basic steps in entering into a real estate contract. Secure financing. If you will need a loan to finance your land purchase, you should obtain a pre-approval letter from your lender early in your real estate search. A pre-approval letter will make you aware of your borrowing limits and may help to convince the seller that you have the ability to complete the transaction. Set aside earnest money. Real estate sellers typically require buyers to deposit a sum of money (often one percent of the purchase price) into an escrow account with a trusted third party, such as a realtor or closing attorney. This
