The first-time buyers have to face several challenges that include difficulty arranging for finances, inability to find a house in the right location, not knowing if they will qualify to buy the house, and knowing if the home loan will be approved. Property experts have suggested then to consider rent to own homes because they will give many advantages.
Advantages of Rent to Own Homes to First-Time Buyers
The rent-to-own homes are house buying schemes where the buyer lives in the house for a specific time as a tenant. This time is called the lease period, and when this period ends, the buyers choose to pay the closing amount and buy the house or leave the deal. The rent to buy homes will provide the following advantages to first-time buyers.
Bad Credit Doesn’t Affect Buying Process
The first advantage that this house buying scheme gives is that buyers don’t have to worry about their low credit scores. They will find several lenders who provide loans with a low score of five hundred points.
Be Familiar with the House
During the renting period, the buyers live in the house; in this way, they can know any underlying issues that might be missed out during the inspection of the house. Also, the buyers can know during this period if the house is worth the investment.
Final House Buying Decision is of Buyer
In some house buying schemes, the decision to sell the house is of the owner. If the owner is willing, then the deal will go forward. But with rent to buy homes, the final decision goes in the hand of the buyer.
Choices of House Buying Agreement
There are two financing choices for rent to buy homes; the lease-option contract and the lease-purchase contract. If you want to select the lease-option contract, you can choose to buy or leave the deal. But with the lease-purchase contract, you are bound to buy the house. So, carefully choose the contract.
Buyers are In-Charge of the House
An important advantage of rent to buy homes is that buyers can have some control over the house’s affairs. They are at liberty to renovate, and the landlord can’t intrude in privacy.
What Things Should First-Time Buyers Know?
There are certain points that first-time buyers have to remember when making the purchase. The points discussed in the below paragraphs will make the difference between making a successful buying deal and losing it.
Know the Total Amount Needed
The total amount of buying a house consists of down payment, mortgage instalments, closing amount, utility bills, a cost for the shifting process, and an extra amount to be kept as reserve. Many property experts like Stop Renting Albany will assist you with arranging these amounts.
What are the Financing Options?
The best choice buyers have to purchase rent to own homes is to apply for home loans. The buyers don’t have to worry about a low credit score because regular payments of mortgage instalments can regain it.
Are Location Choices Available?
It is good to know if the rent-to-own homes are available in different locations, especially in areas where you wish to buy the house.
What are the Rent to Own Properties Options?
Another thing that you have to know is which properties are available in the scheme. Some home types don’t support the rent-to-own home scheme. So, check with the local agents to know if these houses are available.
Know-How Much Credit Score is Needed
The minimum credit score required is five hundred. The lenders will give the loan with this low score because; they know that buyers will make up for the loss when the mortgage is paid.
Getting Home Loan Pre-Approved
The main reason for having the home loan pre-approved is that you can receive the amount quickly when you apply for the loan.
These are the advantages that rent-to-own homes will give first-time buyers. Also, the points that buyers should know before making the purchase.
Below are the questions that will enhance your understanding of rent-to-own homes.
Frequently Asked Questions
Are rent-to-own home offers legitimate?
Yes, rent-to-own homes are a legit offer because they follow lease-option and lease-purchase contracts. You have to choose the right company and real estate agent to make the purchase legit.
Where can I find rent-to-own homes?
Several companies are offering rent-to-own homes. It is important to search for the builders and developers who are closest to your location and are offering the best
My Sister would like to purchase a rent-to-own home. Is this a good idea?
Yes, rent to own houses are a good idea because the credit score can be as low as five hundred, you can live in the house during the lease period, and at the end of the period, choose to buy the house or leave the deal.