Advantages Of a Rent To Own Home
An alternate way to own the home you rent
The Rent to Own arrangement affords those who would not normally meet the standard criteria to purchase a home outright. Rent to own gives more people a chance to get that dream home.
The decision to buy a home can be a long and involved process. The main issue is finding a home you can afford. Then once you find a home you are pretty much locked into staying there for a specified period of time. This is fine if you are sure you like the home.
However, if you decide that you are not happy with the home for whatever reason, the process of getting out of that home could be long and involved. A Rent to Own arrangement offers a simple, affordable and practical solution.
Mortgages can be a big expense to take on right away. For those with less than stellar credit actually qualifying for a home loan can be near impossible. Saving up the money for a home can also be a tedious and time consuming undertaking.
While there are many reasons to want to own a home, actually achieving that dream can take some time. A viable solution is rent to own homes. This gives you the option to lease the home for a year or so before actually committing to purchase that home. This solves the problem many home owners often face in the first year or so known as "buyer’s remorse" where problems or concerns you didn’t initially think about or consider come to light.
Let’s look at the advantages of a Rent to Own home.
The obvious advantage is that it gives buyers a chance to experience the house. A home owner or a real estate agent can sputter off facts and figures and stats all day, but until you actually live in the home you do not really know if it is truly right for you.
When getting an initial look at a home some problems are not noticeable. Issues with the pipes or drafty windows take time to become aware of. In addition, someone showing you the home is likely to gloss over any negative aspects of the home and the neighborhood.
A Rent to Own arrangement is also great for those with credit issues. Renting a home at first gives you time to build up your credit and equity over time. This can make the transition to home ownership a lot easier.
Rent to Own can also bring in more potential customers instead of a doing an outright sale. You will likely get less people who are just curious to see what your home is like or are not realistically planning to buy because it is simply too expensive.
In addition, a poor economy means that less people can afford to purchase a home outright or qualify right away for a loan or mortgage.
Another benefit for sellers is that if the buyer makes the decision not to purchase the home following the initial rental period, the rent credit is considered to be non refundable.
A Rent to Own arrangement can be beneficial for both buyers and sellers. It can be difficult to find buyers today who meet the qualifications needed to readily purchase a home. This includes not only good credit, but the ability to make a large down payment and handle home-related expenses such as repairs.
Rent to Own has many advantages. In addition to giving a break to buyers with credit issues or with limited financial resources, it also gives them a chance to get to know what may become their new dream home.
Advantages apply to sellers as well. It gives those selling their home more offers from people who are seriously interested in buying a home. Generally people who want to do a rent to own arrangement are committed to the idea of eventually owning that home.
Take an organized approach to help simplify the process of finding Rent to own properties, use the checklist at this location: Click to get the Home Buyers Checklist