If both the buyers and sellers take precautions to protect their interests and are aware of the pros and cons, seller financing can be a great way to finance the purchase of a home. The most critical aspect of any financial agreement is that a licensed attorney should prepare a written contract with clearly outlined terms. Although seller financing does away with the need for an appraisal and inspection set by the lender, buyers should still opt for both to avoid overpaying or dealing with structural issues. Also, sellers are not obligated to do a credit check on the buyer before agreeing to finance the sale; though, it is a smart way to lower risks associated with owner financing and increase the odds of timely payments from the buyer.