Rent-to-own homes are a new and wonderful innovation in the real estate industry. Often Rent-To-Own homes are wonderful for people who normally may not get approved for a normal home loan. Buying a home through a rent-to-own agreement has become more popular in the aftermath of the 2008 financial meltdown. More people have been looking at creative solutions to buying a home. Find out if Rent-To-Own is the right option for you.
Time Frame For Rent-To-Own
- The initial lease spans usually from a year to three years, giving you plenty of time to make a safe and well educated decision on your future home purchase.
- Usually only one person can make the decision to purchase the home during the agreed lease period.
Trust A Professional
- As with all real estate, its important to make sure that all of the information that you are receiving about your new home, as well as the mortgage, insurance, etc. is clear and well defined. You don’t want to make a mistake that could effect you future in your new home negatively. So make sure to trust the people that definitely know what they are doing.
Keep Detailed Records
- As with any financial transaction, its important to keep a detailed and specific paper trail. This will be helpful in your final purchase or showing the bank that you have made on time and consistent contributions to your rent or down payment.
- The price that you initially agree upon with the owner of the home is locked in after signing the lease agreement for the time that you are renting.
- For example, the house could be rented by its owner for a standard rent of $1,750. But when negotiating the rent-to-own contract, you and the homeowner can agree that you will pay $2,000 a month, with $250 as your home buying credit. At the end of a three-year lease, you’ll have $9,000 set aside. That money is returned to you at the time of settlement and can be used for your money deposit, down payment or closing costs.
Now that you have the information the information, think purely about the benefits that renting-to-own could bring you!
- Its easy to qualify. The seller dictates the qualifications, making it much easier for most people to qualify.
- You can immediately occupy the home. After paying the lease fee, the buyer is free to move into the home without the normal home buying hoops to jump through.
- You get to try the home before purchasing. You have time (often years) between when you move in and when you purchase the home, making you more comfortable with the decision.
- No property taxes. Until you have fully purchased the home, it is the seller’s responsibility to pay the property taxes.
With all of these benefits, it makes a lot of sense that the rent-to-own market has exploded in recent years. Don’t let this deal pass you by. Look at your options and take advantage.
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