When at the end of a negotiation it comes time to pay for a property , many different possibilities arise before you. From the purchase of the house with cash payment to the transfer contextual to the deed: in this Casavo guide you will find the details of all the methods to choose from.
All payment methods for buying a house
Real estate sales usually provide for a balance divided into two phases , the first upon signing the preliminary contract and the second upon signing the deed . In both moments you have different payment methods available for the purchase of a house https://www.thehouseguysdc.com/we-buy-houses-baltimore-maryland/
Unless he immediately has the entire amount indicated in the contract, the buyer covers at least 20% of the agreed price while the remaining amount is paid through a mortgage. If you need to take out a loan for a higher percentage, the banks ask you for further guarantees, such as a guarantee or a mortgage on another property.
A very important requirement of real estate payments is their traceability . That is, you need to keep proof that certifies the successful transfer of money, which can be a photocopy of the check or the receipt of the transfer. Let’s begin by analyzing the most commonly used options for paying the down payment indicated in the compromise.
Non-transferable cashier’s check
The check for the purchase of the house is one of the most widespread solutions. Our recommendation for you is to prefer a non-transferable cashier’s check , to have the guarantee that the indicated amount is really available in the account. This type of check is in fact issued by the bank only after the effective deposit of the covering amount.
If you are proceeding with a real estate negotiation with a trusted person , for example in the case of selling the house to a child or another relative, then even a traditional check is more than fine. In general, however, the standard bank check could turn out to be overdrawn and pave the way for unpleasant consequences to collect what was agreed.