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Steps to buying your parents鈥?houseGet pre-approved for a mortgage. Speaking to a lender about gettingpreapproved for a mortgageis a good first step. …Decide on a purchase price. Using the online resources mentioned above,get an idea of how much the home is worth. …Get professional advice. Buying a home from your parents can have financial,legal and tax consequences. …Fill out a sales contract. Your sale contract or purchase agreement will outline the agreed-upon price and terms for the purchase.Officially apply for a mortgage. Talk to your lender to start the official mortgage application process. You鈥檒l complete an application,and the lender will likely require an appraisal.

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If you take out a mortgage to buy the house, it works like any other home purchase. It doesn’t matter that it’s your parent’s house: The bank still expects you to pay for a title search and title insurance. The bank also requires a home appraisal to prove the home is worth the mortgage you take out.

There are several ways to arrange the sale, depending in part on whether your parent is moving on or staying around. If you take out a mortgage to buy the house, it works like any other home purchase. It doesn’t matter that it’s your parent’s house: The bank still expects you to pay for a title search and title insurance.

Depending on the financials, buying your parents鈥?home might be profitable for you. As long as everyone involved agrees on the structure and purchase price of the house, and you can realize a profit, buying the home could help you build wealth. Just like any other real estate investment. Can ease the burden of a home sale for mom and dad 鈥?and you.

Your parents could be taxed on gifted down payment funds You may be able to ask your parents to be the lender if you can鈥檛 qualify for a mortgage Your parents may have to gift a least 15% their home鈥檚 equity if you don鈥檛 meet special requirements Buying a distressed home from a family member