Seller financing process

[Victoria Spagnolo]

Hi all! This might be a bit of a broad question, but I am a rookie investor and want to learn more about seller financing. I'm wondering if those who have gone through this process on the buyer's side can explain what it looked like for you. I've cold called, reached out to sellers who offer this financing, and thought about the terms of the financing (including number of years, monthly payments, whether there is a balloon payment, etc.), but what are the next steps after you and the seller agree to specific terms? Drafting contracts? And then do you order an inspection of the property before signing contracts? Have you ever signed contracts without first seeing the house? I am looking to buy out-of-state and personally wouldn't feel comfortable doing this. Are the properties that offer seller financing oftentimes unmortgageable? I guess I worry about purchasing a good deal in a good area to later realize that there serious issues with the property. I appreciate any and all insight you have on this process. Thank you in advance! 

[Chris Seveney]

Quote from @Victoria Spagnolo:

Hi all! This might be a bit of a broad question, but I am a rookie investor and want to learn more about seller financing. I'm wondering if those who have gone through this process on the buyer's side can explain what it looked like for you. I've cold called, reached out to sellers who offer this financing, and thought about the terms of the financing (including number of years, monthly payments, whether there is a balloon payment, etc.), but what are the next steps after you and the seller agree to specific terms? Drafting contracts? And then do you order an inspection of the property before signing contracts? Have you ever signed contracts without first seeing the house? I am looking to buy out-of-state and personally wouldn't feel comfortable doing this. Are the properties that offer seller financing oftentimes unmortgageable? I guess I worry about purchasing a good deal in a good area to later realize that there serious issues with the property. I appreciate any and all insight you have on this process. Thank you in advance! 

 Seller financing is no different than the process for conventional financing. Only differenec is who is providing the loan. Get to learn the process of conventional financing and it will be very similar.