my husband and I are renting my brothers house he still has a mortage in his name so we are paying his

Asked by Mary, San Antonio, TX Sun Jan 11, 2009

mortage. We are looking to buy a house for the first time and maybe buying this one but not sure how to go about doing that. I want to be fair on both sides

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, ,
Thu Apr 12, 2012
Hi Mary, definitely, if you are buying from your brother talk to a good loan officer today. This would be considered a non-arms length transaction, and might be a difficult loan to get done. Even iff you choose another home, it is still a good beginning to get with a loan officer and find out what you can afford.
Best wishes, Jim
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Bruce Lynn, Agent, Coppell, TX
Mon Jan 12, 2009
#1. Get preapproved for a mortgage.
#2. Have your lender order an apprasial.
#3. Once you get the appraisal determine how much you want to offer for the house.
#4. Make your brother an offer based on that.
#6. Have an attorney write the contract/offer for you....even if it is with your brother.
#7. Since he is selling direct to you and there is potentially no realtor involved perhaps you could
split the normal realtor fee that would be involved.
Good luck...sounds like a good deal. Also just keep your lender involved and ensure they understand
you are buying from your brother and that you are already in the house.
1 vote
Monica Barri…, Agent, San Antonio, TX
Wed Oct 10, 2012
I agree that getting pre-approved is a good starting point, I just want to add that you should contact at least three banks/mortgage companies to compare their interest rates, fees, and customer service. A great financial company will make this whole sale's transaction go much more smoothly.

I can do a FREE Comparative Market Analysis for you to estimate the fair market value. Based on my findings, if you still want to purchase the home, then an appraisal should be ordered by your lender.

I would seek a real estate attorney to draw up the paperwork needed and a title company to handle the transfer of title.

I hope this helps. Remember that it is still a "buyers market", so keep your homebuying options open; there are a lot of fantastic properties out there right now. I know moving is a pain, but if you can find your "castle", then make that move. Please contact me should you decide to look for other properties.

Monica Barrientos-REALTOR®
0 votes
Marty Shields, Agent, San Antonio, TX
Wed Oct 10, 2012
When dealing with family I would not advise buying or selling with out a Realtor or Attourneys help.

The fair market value can be determined without paying for an appraisal, but one will be needed if financing is involved.

Based on the scenerio given I would be able to help you, if you buy the home you are if for 2%. This fee is usually paid by the seller, or you could split it depending on how you structure your offer.

If you decide on a different home then my services are free, the owner pays the fee.

Marty Shields
Real Living/Best Homes
0 votes
Luke Allison, , Asheville, NC
Sun Jan 11, 2009
There are 2 factors involved: How much is the home worth and how much does your brother want to make off of it. The difference in those 2 numbers can be a gift of equity combined with a closing cost concession.

Assuming all works out well, you can buy the home for nothing out of pocket
If you have any questions, feel free to contact me.
Luke Allison
Flagstar Bank

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0 votes
Dallas Texas, Agent, Dallas, TN
Sun Jan 11, 2009
Contact an appraiser who can determine true value of home purchase for that agreed amount. All sales must be registered with title company you 'll have qualify for a loan locate a mortgage broker .
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Bill Eckler, Agent, Venice, FL
Sun Jan 11, 2009

We totally agree with the importnce of getting an independent appraisal. This can be accomplished through an appraiser and paying a $300 to $400 fee for this service or have a real estate professional provide you with a FREE Comparative Market Analysis.

Good luck
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Danny T Thom…, , Austin, TX
Sun Jan 11, 2009
Good evening

Talk to a mortgage professional first. Then, if you want to buy your brothers house, get an independent appraisal.
If you agree on the price, go for it. If not, there are a lot of great buys out here.

Let me know if I can help. Either way, an experienced agent can really bring perspective to the situation.

All the best.
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Frank Bailey, Agent, San Antonio, TX
Sun Jan 11, 2009
Your first question should be to ask your brother if he's interested in selling to you. If he is, then your next step would be to get in contact with a reputable loan officer to find out how much of a house you can afford. Then if your brother is willing to sell to you you may in fact conduct the transaction several different ways; on your own, with an agent or with a real estate broker. I hope this helps with your decision.
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