Fundamentals of House Trading
The basic concept is simple – you buy my house, I buy yours. Generally, each party gets a new mortgage. Sellers can decide to carry loans, but that is more rare.
Online House Trading.com uses a search engine to match sellers who are interested in each others’ homes. A two-way match occurs when two sellers are willing to trade for each other's houses – looking at location, price, size, and amenities.
House Trading has all of the same steps as a typical sale and purchase real estate transaction. House Trading is simply where two sellers agree to buy each others properties. Both contracts need to be contingent upon the other one closing to protect the sellers. Both parties using the same title company make the process easier. It is important that escrow makes certain no monies change hands until both parties close.
If you want to house trade, where do you begin?
- If you are uncomfortable doing this yourself, select a Realtor or Trade Facilitator to assist you.
- Select a lender and Get pre-qualified. Bank of America is a preferred lender for OnlineHouseTrading.com because they know the inner-workings of the company.
- Identify your trade.
- The Offer: When you find your trade negotiate and place your offer in writing. Make sure both contracts are contingent upon the other.
- The Escrow Process: Contracts and escrow deposits are sent
- The Mortgage Loan: The contracts are submitted to the loan officer to finalize the application process.
Preliminary title report is generated. Both parties do inspections, submit disclosures, do an appraisal, and move through the loan approval process.
- Final Walk Through: The buyers and or the agent representing the buyer walk through the property prior to closing to ensure the property is in acceptable condition.
- Loan Documents: The documents are sent to the title agent by the Mortgage Company or bank.
- Title Agent returns signed documents to the lender for final approval and makes certain that all parties have signed off on loan documents and deeds. Then, the loan is funded! Final escrow is closed and any settlements are delivered to both parties!