Today’s interest rates are at their lowest levels. Home prices are more affordable today than they were in the entire past decade. Owning a home is often less expensive than renting – even without looking at the biggest hidden secret to savings. In fact, tax savings and benefits are often unknown to new and prospective home owners. Let me explain. When you pay mortgage interest on your primary...
A rent to own agreement gives the buyer control of a property, not full ownership, with the 'option' to purchase the property at the end of the contract period. Essentially it is a contract to buy a property with an extended closing date. That way you, as the buyer, have time to save a down payment, clear up any credit issues, and to line up financing. Typically, you, the buyer, will put down an option...
A lease option can work out beautifully for you as the buyer if you walk into the arrangement with your eyes open. We want everyone to succeed in their dream of homeownership, so here are three questions you need to ask yourself before you decide that renting to own is for you. 1. Will You Qualify for a Mortgage Later? Renting to own essentially pushes the purchase date out 12-36 months so that you...
Like all great agreements, renting to own is beneficial to both the seller and the buyer. But, let’s take a look at the advantages for you as the buyer. In a rent to own agreement, you, as the buyer, freeze the price on the home for a year or two in advance of when you’ve agreed to close on the purchase. Since most markets appreciate, you’re locking in a good deal with built in...
Being a tenant buyer is different than being a renter. In a rent to own agreement, since you’re both a tenant and the future owner of the home, you’re expected take greater pride in the property and have greater responsibilities towards it, and you’re expected to uphold your duties as a good tenant as well. While usually the mortgage, taxes, and large repairs are covered by the seller during the...