Guide to Rent to Own Homes
Rent to own houses are viable options for people who want to own a home but could not, for the moment, obtain mortgage because of poor credit standing.
To rebuild your credit, accrue monthly rental credits, and save money for your down payment, you will need at least 6 ro 24 months to accomplish.
The benefit of the rent to own arrangement to the buyer is that you can already live in that house until your finances are well in order. With this arrangement the price of the house will be locked and you can start building your down payment credits.
To the seller, this arrangement is also beneficial because the tenant living in their home will definitely take care of the house more than the typical renter. The seller will also collect a large non-refundable fee down payment from the tenant. The new tenant in the rent to own arrangement will should be interested in maintaining the house well for his own sake.
It is a very important component of the rent to own buying process that your credit be repaired. Your should try to improve your credit score throughout the option period. If you want to rebuild your credit standing, you can seek the help of a respected lender or credit repair firm to help you rebuild your credit standing. A seller should work with the future buyer so that they keep on the track to purchase the home.
It is better to work with your rent to own seller like a team. They both need to make sure that they have the correct value of the property. Otherwise, it would be difficult when trying to get financing. For the seller not to lose the deal if the appraised value is not the same as the agreed price, then he should renegotiate the sale.
Each month, you should see to it that you make rental payments on time. If you are paying on time, the lender will be able to use you on time documented payment history to benefit you at closing time.
If you pay the monthly rental payments on time, and the seller must be willing to credit you for this. This is very important is assisting the rent to own buyer with building additional down payment funds.
Check on the house title to see if it is free and clear. The buyer should ensure this, otherwise the seller would find difficulty in closing if the house has big liens or judgments.
These considerations are very important to ensure so that you will have a rent to own agreement without any problems. If everything is alright then this agreement is viable for both parties. The home is sold and the buyer is able to buy it with the locked price and has time to build his credit.