If you are someone who is desperate to buy your own home but is hindered because of your poor credit score which does not qualify you for a mortgage presently, then finding a rent to own home is the best option for you.
Within 6 to 24 months, it will be possible for you to rebuild your credit, accrue monthly rental credits, and save money for your down payment.
Rent to own arrangements are beneficial because even while you are still working at your finances, you can already live in the house. Then you can lock the price and build down payment credits.
To the seller, this arrangement is also beneficial because the tenant living in their home will definitely take care of the house more than the typical renter. The seller will also collect a large non-refundable fee down payment from the tenant. This new tenant that desires to own the house later on will have an interest in maintaining the house until the end of the option period.
Repair of your credit score is very important in the rent to own buying process. Throughout the option period you should be working proactively on having a better credit score. If you want to rebuild your credit standing, you can seek the help of a respected lender or credit repair firm to help you rebuild your credit standing. A seller should work with the future buyer so that they keep on the track to purchase the home.
It is better to work with your rent to own seller like a team. They should pay close attention that the property is valued correctly. If not, you might have a difficult time getting financing. If the house appraisal does not match the agreed sales price, then the seller has to renegotiate in order not to lose the deal.
You should be making rental payments on time each and every month. At closing time, this will be to your own benefit because your lender will be able to use this on time document payment history.
The seller must be willing to credit the buyer for on time rental payments. This is very important is assisting the rent to own buyer with building additional down payment funds.
Check on the house title to see if it is free and clear. The buyer should ensure this, otherwise the seller would find difficulty in closing if the house has big liens or judgments.
If you are going into a rent to own agreement, then should consider the things discussed above. For the most part it is a viable option for both parties. The home is sold and the buyer is able to buy it with the locked price and has time to build his credit.