Buying a home, whether it’s for the first time or the fifth time can be very stressful. You might not realize that it’s also rather costly. There are upfront costs that you might not know about, or you might have forgotten about them. At a minimum, you will have spent at least $1,400 on the various fees and insurances required. There’s also the down payment, which can be a large percentage of the loan. All of these costs can quickly mount up, and possibly turn buying a home into a completely unrealistic option for you. Fortunately, there is an alternative. You may be able to realize your dream by renting to own your first home.
Renting to own may be an option for many people, including people who have a poor credit rating, or who have never had credit before. These are renters who are interested in buying and could be in a position to buy after a period of time. Owners, landlords, and property managers tend to like rent to own orowner financing as it tends to attract a better quality of tenant their average rental tenant. Rent to own tenants are much more invested in the property as they have the option to buy. These tenants are more likely to take better care of the home.
If you want to own your own home, or if you have just moved into the area and you haven’t made any final decisions on where exactly you want to live, then this type of agreement could be the best choice for you. You and your realtor may find your dream home, and after a period of time, you can buy the home.
Finding a Realtor
The first step you need to take to find a rent to own property, is to talk to a realtor. Your realtor will be able to help you determine if rent to own is right for you, and what your options are. Your realtor will also work with you to find the perfect home for you and your family. You will be able to find a home that suits your needs and style.
Finding a Home
Most people don’t know that Realtors can help with options other than buying or selling your home. A Realtor can also assist with finding homes or apartments to rent. But best of all, they can help you locate rent to own homes that fit your criteria.
The Lease Option
The thing that differentiates a rent to own agreement from the normal lease agreement is the option to buy. This is usually referred to as a lease agreement. You realtor will help you review the terms of your lease option to make sure that it works for your needs.
Signing the Lease
Once you have found the home, and the rent to own option has been agreed upon, you will need to sign a one year lease, which can be renewed, and a Right To Purchase Agreement. The Right to Purchase Agreement will contain details such as the price of the home when you do purchase it.
You can choose to purchase the home at any point during your lease, or you can renew the lease. If you choose not to purchase the home, you can simply not renew your lease and walk away.
Sometimes the rent to own agreement requires an earnest money deposit. The deposit will be held in escrow by a title company until the tenant buys the home.
The agreement will set out the price of the property. The price is based on the current market, and not what the potential market could be at the time of purchase.
The agreement will set out that the property belongs to the seller, and that there is a landlord-tenant relationship, until the tenant purchases the property, which will end the existing relationship.
There are many benefits for both the tenant and the seller in the owner finance agreement. The seller will receive financial income from the property in the form of rent, and may well be able to take advantage of tax deductions. The tenant gets the benefit of having time to examine the various mortgage options, and some of the rent may be taken off the sale price of the property.
Who Can Rent To Own
This type of agreement might be a suitable option for first time buyers, people with poor credit, people with no credit, people who need more time to find a suitable mortgage, and people who have recently moved to the area but don’t really know which neighborhood is the one for them.
If you’re looking for rent to own home in San Antonio, then you should contact a realtor today, and gain expert insight, and advice. You could be living in your dream home before you know it.
If you’re looking for homes in rent to own programs, then call us today for expert advice, guidance, and a beautiful dream home.