l live in Texas l wanted to know If l gbuy a house from the owner...

what should l look out for...

l have bad credit so it is very hard to be approved for a loan!

l know they are asking for 5000/dn and 1000/month

You want to know if this will be a first position lien, meaning that there r no other liens against the property with a more senior position. Does the owner have an existing mortgage that they will not be paying off, but instead be paying with the money they collect from you?

If that is the case, u r assuming some risk, because the owner could default on their mortgage, & if it is senior to ur loan, the bank could foreclose & take YOUR house - even though u r current on ur loan. Plus, if the owner were to have trouble paying his mortgage & need to refinance, he would have a hard time doing that because his loan to u would put any new bank mortgage in a junior position which usually means less favorable terms & fewer banks wanting to take the risk.

You also want to be sure that u get the deed, & that this is not a deal where u r leasing the house.

Check out virginmoney.com for more info - they do owner finance loans & have some good material to help u understand the process.

In Texas any sale of real estate should be done through a Title company of a certified real estate lawyer, however l would recommend a title company. The seller should provide u with a warranty deed & a clear title insurance policy. Stewart Title is one of the larger title companies in Texas. l have used them many times & have always been extremely pleased with their work.

If the seller refuses to provide title insurance, a warranty deed or refuses to use a title company WALK AWAY --- No --- RUN AWAY from the deal.

Also make sure that a seller financed note is written & included in the closing documents

If u r not sure about any of these items find some one who understands them & can help.

l would avoid this situation, especially if you're a first time home buyer. if you must do this, do not even think about doing this without consulting a lawyer.