If you are thinking of renting to own a home, you are on the right place to have a look on the topic. There are certain benefits of renting to own a home. If you buy your dream home by rent to own, you are free of the worries of the mortgage companies, improve your financial situation so you can purchase the home at a further point in time.
Let us have a brief look on some of the benefits of renting to own a home:
Renting to Own Home May Be the Ideal Solution:
Through renting to own your next home you will get an opportunity to check out the locality or the neighborhood before investing lump sum money for your dream home. While you enjoy the home in lease you are getting enough time to decide whether the home, its locality, the place suits you or not. Thus, you have options whether to own the property or not. Once you take complete decision, you can be the master of the house.
Now you may ask that whether it is a wise decision to rent to own a home? What financial benefits are you getting through this process? The answer is that the down payments that you need to pay as well as a portion of your monthly rent will be applied toward your finial purchase as closing costs and or down payment. That way you are free of the tensions of the closing costs of the home.
Another financial benefit is that you are locking in today’s price but buying it in the future. Thus, the cost of the house remains the same at the end of the lease period and you could depending on the real estate market have gained appreciation on the home.
One of the major benefits of renting to own a home is that in the method of rent to own you have to deal with the home owner. For rent to own you are not dealing with any financial institutions. However, it is recommended that you should do a thorough research of the property as well as about the home owner before finalizing any deal.
In order to be considered a good candidate for a rent to own home you must have stable employment of at least 6 months, 3-5% down payment and no criminal history. Home owners will only want to work with rent to own buyers that have a real chance at buying their home. Meeting these minimum guidelines will make them feel more comfortable and increase your chance of getting financed once you have improved your credit situation.
Many people got their dream home through renting to own. This process is also gaining its popularity among aspiring home owners and folks that may have gone through foreclosure. I always suggest working with a competent mortgage loan officer to determine what you can financial afford on a monthly and purchase price stand point and work with tenant placement companies that specialize in placing rent to own buyers in homes. So, go find a great place to rent to own.