Smart Ideas: Houses Revisited
Guide to Rent to Own Homes
The best option for people who want to own a house but could not presently get a mortgage because of poor credit standing, is to look for a rent to own house.
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.
A rent to own arrangement is beneficial to the buyer because you can live in the home now while you are getting your finances in order. Then you can lock the price and build down payment credits.
The home owners will also benefit much from this arrangement because this new tenant will already treat your home as his and thus will surely take care of it more than a regular tenant will. The seller will also collect a large non-refundable fee down payment from the tenant. This new tenant that desires to own the house later on will have an interest in maintaining the house until the end of the option period.
Repair of your credit score is very important in the rent to own buying process. Having a good credit should be on one of the main concerns that you should be working on. It is best to work with a respected lender or credit repair firm to help you rebuild your credit standing. The seller, on the other hand, works with the future buyer to ensure that they remain on track to purchase their home.
It is better to work with your rent to own seller like a team. The property’s valuation should be correct and both of them should ensure this. If you are trying to get financing and the valuation is incorrect, then you might have a difficulty in this. If the house appraisal does not match the agreed sales price, then the seller has to renegotiate in order not to lose the deal.
You duty is to ensure that your rental payments are paid on time. Your lender will be able to use this on time documented payment history to the benefit of the rent to own buyer at closing time.
On time rental payments should be credited by the seller to your credit. This will help asset you to build 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 are the things to be watchful about when entering into a rent to own agreement. 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.
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