Rent To Own Homes
For those who are not financially secured but have already found a place which suits their preferences, then rent to own house can be an excellent choice. How you can therefore get into a rent to own contract; a question that a number of people are asking.
Terms for rent to own houses are going to vary depending on the seller but in general, the property owner and renter is going to sign a contract to which the renter agreed to rent the property for certain period of time which is often 1 to 3 years and during that period, the renters pay above market rent with excess rent is credited to the down payment as the contract ends.
Rent to own deal is offering a chance for prospective buyers to settle into a house that they like to buy while they are saving for the down payment, improving their credit score or waiting for negative factor onto their credit report similar to collection or foreclosure to be forgotten. Home sellers are typically offering a rent to own contract in the event that their house isn’t selling quick and they wanted to move out fast.
Homebuyers and home sellers must have the contract checked by a real estate attorney since there are plenty of things that have to be given attention. For the lease agreement terms, make sure that it included the length of lease period, amount of the rent, who will be responsible for paying the property taxes, homeowner and insurance fees during lease period and also, you need to clarify who will pay for maintenance, repairs and utilities during lease period, rent credit for the down payment and to how it is held until time of purchase, both parties must agree to write what would happen to the credit if ever the renter has opted out buying at the end of their contract and the likes.
For the renters, it is essential to check the options for rent to own house contract than deciding to rent a less expensive house and then, save the money for down payment. Obviously, if you’ve fallen in love on the house and determined to buy it, you’ll go for the rent to own contract even if it cost you more.
You should not rush things when it comes to this transaction because remember, the moment that the transfer of title is completed, it is you who will be automatically in charge for whatever happens to the house; so better yet, read and understand everything in the contract. It’s therefore a great idea to call a home inspector to do inspection of the property before buying it.