As with any major financial agreement, it’s important to enter into a contract for deed (CD) fully aware of the terms, as well as your options and rights. We’ve made our process as simple and clear as possible. However, we ask that all clients work with their real estate agent (or attorney) to confirm that our CD program is a good fit for their situation. In addition, there are a few steps we recommend before signing a contract for deed.
Four Steps to Take Before Signing a CD
Gather Your Team
Before starting the CD process, it’s a good idea to enlist the trusted professionals that will help guide you through the program. These generally include a realtor, property inspector, loan officer, and more as needed.
Apply for a Mortgage
At Slow Flip, we recommended discussing mortgage options first with a licensed mortgage originator. If you will likely qualify for a conventional mortgage within a few months, it’s best to go that route. Regardless, an originator can help you determine timing and next steps to qualify for a mortgage. (As a reminder, we focus on buyers who have a good plan to satisfy the CD within 5 years. This is usually achieved by refinancing into a mortgage.)
Get an Inspection
This is an important step to ensure that the property is valued accurately, and that there are no major issues requiring repair. You should also check with the local housing inspection office to see if there are any reported code violations.
Understand the Contract
We work to make our contract for deed terms and process clear and understandable. But you should go over the contract in detail with your team to ensure that you understand every aspect of it.
The Slow Flip contract for deed program helps families in the Twin Cities metro area of Minneapolis, St. Paul and surrounding suburbs purchase a home using a contract for deed, or CD, when a mortgage is not possible. The Slow Flip contract for deed can be an ideal tool to purchase a home when buyers need time to adjust their income, credit, debts or other financial components so they can eventually qualify for a mortgage.
Are you or your clients interested in learning more about the Slow Flip contract for deed? Contact us at 952-417-0000 today.