Are you one of those who would like to have their own home but declined by mortgage companies for a home loan? If so,a Rent to Own Homes is the way to home ownership. You can move in as soon as you want. With the steady rising price of real estate these days, it is so hard to save more and more each time just to afford it. If you are tired of always renting and you cannot see anything from that hard earned money you pay.
How It Works
Rent to Own Homes agencies often have different specific plans or packages for you to choose from depending on your ability to pay the monthly mortgage. The rate is usually higher compared to the normal lease because of the no deposit procedure. Your seller is taking this risk for you to have a better chance of having a home. The range of timefor payment depends on your agreement and your capacity to pay.
A contract must be created between you and the seller of the Rent to Own Home. Both parties must agree on the terms. There are advantages and disadvantages to buying your home this way. If you, as the renter, find anything wrong with the home while you are living there, you have the option of preceding the deal. Granted, you will lose the rent monies you have paid, and any money you have paid as a deposit, or upfront option fee, which, depending on the amount of interest you are being charged can add up to a considerable amount. This money is intended as a down payment on the home, and it might be quite difficult to come up with such a large amount before you lease or rent the home.Your contract will probably state that your rent has to be paid by a specified date each month or that month’s rent credit may be forfeited if you are late by even one day. You have to pay the rent on time every month. Think of the money you will lose if you are late 3 or 4 times a year. If your rent payment on Rent To Own Home is $1500 a month, being late even twice can cost you $3000 that you will have lost on your down payment. So make sure you are never late with the payment.
During the rental period, you are the person responsible for any and all repairs and maintenance to the home. This means that even though you are technically ‘renting’ the home, there is no landlord you can call if anything goes wrong, breaks, or other maintenance concerns.
The seller has certain advantages at his disposal, as well. they will be able to set a higher price for the purchase of the home, even though the housing market is at an all-time low. People who are looking for a Rent To Own Homes will not have many options about the price if this is the only way they can own a home. If the person who is renting the home suddenly decides to back out, the seller will keep the option fee and any rent that has already been paid. It is essential that both you and the seller read and agree on everything that is in the contract.
Why own a Home?
Owning a home often produces a different feeling of comfort and security. It is home that you can do whatever you want without having to get the ok of a landlord. Rather than renting, it is better to spend a little more and have ownership of the place, right?