Definitely consult a "real estate attorney." Depending on the state you are in you could also have an escrow company close the transaction for you for a cheaper fee. I'd require the seller provide title insurance. Most title companies double as escrow companies, but escrow is a neutral 3rd party so I'd consult an attorney to write the purchase and sale agreement up or a real estate agent and then have escrow close the sale.
Interest rate & loan term are negotiable and you can consult a lender to compare. I'd order an appraisal too. There is less hassle and a lot of fees you'd normally pay a bank that you'd save on. You'll typically save on loan fees (points), get a lower interest rate and not have to worry about debt-to-income or credit issues. If you default the seller usually automatically takes the property back through non-judicial foreclosure.
Jul 12, 2010