Traditional ways on Mortgage can do with seller financing, you can bypass the bank and make mortgage payments directly to the person you bought the house from, its sounds more practice???, let see, the official agreement that defines the principal amount, repayment schedule, interest rate, consequences of default and other fully terms is usually drawn up in the form of a promissory note on agreements.
Home-owners that called a seller, might offer financing if he or she is having trouble selling the property or the housing market is weak. but however, most home-owners as sellers don't offer this option for one of the following reasons, as reported from investopedia(dot)com, this is the reason :
1. They don't own the house free and clear.
Some mortgage agreements commonly require the mortgage to be paid in full when the property is sold through seller financing means, yes its defenitely, Thus, homeowners carrying mortgages need to receive the full proceeds from the sale immediately.
2. They don't want to become lenders.
They want to get a better rate, while seller financing can provide a better rate of return than the seller could get elsewhere, the additional risk and hassle may not be worth it to them. That being said, the seller doesn't have to become a lender. He or she can arrange to immediately resell the promissory note to an investor in what is known as a simultaneous closing scheme.
So as we knew, when the option is available on the scheme, seller financing methode has many potential benefits for buyers. Buyers can get the closing process can be faster, since strict bank requirements can be bypassed, and it's also less expensive, and more cheaper, since there is no need to pay a mortgage origination fee or other lending fees that banks commonly charge. On some scheme the terms of the mortgage and the criteria you need to meet to qualify are entirely up to you and the seller,that can be easy to negotiate between seller and buyer, its more flexible.
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