Traditional bank loans have often been the cause of several problems for those that are dealing with real estate.  The conditions, costs and fees that apply to this can often work against someone who has had financial fluctuation and difficulties.  If you are looking at alternatives to move into a home, then considering seller loans may be a better alternative.  This works outside of a bank to help you move into the home of your choice.  When comparing specific fees against seller loans and bank loans, you will find that there are several opportunities for your real estate needs. 

Interest Rates:  Bank lenders will have either fixed rate or adjustable rates for interest costs.  If the market is not in good conditions, then this can move to as high as 7% of your loan.  If you don’t want to deal with these extra costs, then you can consider seller loans.  These will have an average of 3% with your interest rate and typically won’t fluctuate for the duration of the loan that you are giving to the seller. 

Extra Costs and Fees:  If you are considering a bank loan, then you can expect to have extra costs and fees that apply.  Any time there are changes in your loan, extra papers that need processed or alterations in the year that you are in, you will be charged.  Seller loans differ from this and don’t include the extra costs and fees.   Because you are looking at a specific agreement between your loan and the seller, there are usually very few costs that are provided. 

Loan Conditions:  If you are working with a bank, you will be asked to pay your loan back within a certain period of time, usually which ranges between 5 and 30 years.  This is usually not flexible, dependent on your credit history and the living conditions that you currently have.  With seller loans, you can change the contracts with more flexibility, dependent on your lifestyle, current situation and the options you need presented. 

Credit History:  One of the current problems with loans is based on the good and bad credit that many potential buyers have.  If you have a financial history that is less than perfect, then a bank may not want to give you the loan needed for your home.  This may lead to higher interest rates and conditions that work against your favor.  If you work with a seller loan, you won’t have the same restrictions and requirements that are typically associated with bank credit.