RentToOwn-HouseFinder.com
Is it a good idea to rent with the option of owning a property?
I would like some helpful information about renting to own. I am very young and I do want to own my own home within the next couple of years and I want son truthful information on the subject of renting with the option to buy.
Public Comments
- yes, when in this kinda contract you aren't throwing your money away.
- That is the best thing you can do, If you like it, and all is well and want to stay there for ever, you buy it, if you must leave to another part, or you don´t like your neighborhood, you leave, nothing lost, be sure that the rent money goes to your down payment, it ca be done....
- I would defiantly go to a local bank or mortgage brokerage first and find out just what it would take for you to get a home loan. Find out how much of a deposit they require and how much the closing costs would be for you. When it comes to a rent to own there are a few things to watch out for. First- most people rent to own because at that particular time they can not get a home loan. They determine how long they should rent by how long they figure it will take them to have what they need to actually make the purchase of the home. I would have a bank run your credit and let you know what you need to work on in the next year to ensure you approval when it comes time to complete you purchase. You could loose a lot of money just by not getting approved when you need to. Second- be careful of red flags in your contract. For example if you need to put a $1,000. non-refundable deposit, don't just assume that money will go toward your down payment. Make sure you read the contract! Good Luck
- Rent with a purchase option: at best it's not very helpful, at worst it's a downright scam. The premise is you want to rent a property and are willing to pay market rent. At the same time you negotiate a price for the property. This is simple enough but some landlords will make you a 'deal': pay above market rent and the extra goes towards the purchase price. Now for the scam part: if you do not exercise the option you don't get the extra $$$ back. Other things to worry about: Your landlord not following through, Your landlord foreclosing, you not being able to get financing, you pay extra then don't want to buy, you using your extra cash to pay towards the purchase and not having a proper down payment to apply to the mortgage. If you want to purchase, work out a land contract with the property owner or do the purchase agreement without paying extra. Good luck
