Benefits of the Rent to Own Home
When talking about the home ownership, rent to own is when the property owner will agree to rent the home, and then you, as the renter of the home, have the choice to buy the home into the future date. In most of the cases, you are to sign a contract that states that you are to purchase the property in a very specific date. Due to the struggling economy, there are many people right now that do choose the rent to own option and there can be many benefits of rent to own a home.
One of the major reasons that you may want to take advantage of the rent to own option is that this can give you much time in order to save money for the down payment. The down payment is required most especially when you are to purchase a home, thus when renting to own, then down payment required can be a lot lower.
Rent to own can also give you more time in order for you to repair that of your credit score. If you do not think that you can be qualified for the mortgage due to the low credit score, then rent to own can surely help you in order for you to raise that of your score and then repair that of your credit. The renting period can normally last for two to five years and so that you can pay your bills on time, you must lower or to reduce the debt and increase your score.
Before you are going to start to rent the home, you may lock in the price and the terms of the deal. If you decide you do not like the home, then you can get out of the contract; but, you will probably will not get the refund you expect. If you start on renting the house whenever the market is down, the property value may be higher when you can purchase the property.
When you are going to purchase a home, closing that of the closing cost can be very expensive. If you are to choose to rent to own, you do not need to have problem about the closing costs. The arrangement with the property owner is being set, so there will be no extra costs that is involved. In some of the instances, the property owner will use the money that you pay to rent the property as the payment towards the price of the home.
The mortgage process can actually be very lengthy; but, right after you rent to own, you can own the property fairly after the renting period is done or over. You will not need also to go through the application process since you already have the agreement.
Since you already have fixed monthly payments, you can be able to budget accordingly. You can be able to know also how much the money that you will need to be able to pay each month, thus there will be no surprises.