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What to Consider in Rent to Own Homes



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By : Roby Hicks    99 or more times read
Owning a house is among the dreams of many people. However, not everyone gets the opportunity to purchase one. This is because of many reasons. First, it is expensive, thus, only few can afford it. Some have bad credit as well. This hinders them from qualifying for a mortgage. And others do not have enough to make the required down payment.

Although this is the case, you can turn to other options. One of them is the rent to own property. This is a good way to purchase a home for variety of reasons. You can rent the house for a while and decide to purchase it after a specified number of years. You need to think it through though.

Read the contract:

Make sure that you read the contract thoroughly. This contract is different from the lease agreement so make sure that you read and understand all the sections. Aside from the monthly rent, you will be asked to pay an option fee and additional premiums. The payments will be credited once you purchase the property. It is important that you understand this so that you will know what portion of the payment will be credited once you purchase the house.

Refer to your lawyer:

It is not enough that you read and understand the contract. It has to be explained to you as well. It is essential that you have a lawyer to do this for you. This is because he will be able to explain all the terms specified in the contract. You have to keep in mind that entering such agreement is a serious matter. You need someone who will represent you properly and who can protect your best interests.

Weigh the risks:

Rent to own homes have their disadvantages. One of them is that you will not be able to get the payments you made if you decide not to purchase the house. You will not also enjoy tax write offs for interest rates like you would if you purchase a house in traditional manner.

Benefits:

After thinking about this and deciding to try it, you will enjoy a few benefits. You will enjoy a faster growth in equity. Aside from that, you will have more options. You will be able to check and purchase homes that you will not afford ideally if you purchase it through mortgage loan. In addition to that, you can use your monthly rent payment to purchase the house. And you will not have to pay a huge down payment.

You can also turn to this option if your credit score is low. Using this option will even give you the chance to repair your credit. In addition to that, there are no property taxes to pay because technically, the property is not yet yours. Although this is the case, you have the freedom to do what you want with it. Additionally, you will not be held liable for repairs that are more than the agreed amount.

If you do not have enough savings for a down payment and your credit score is bad, then try rent to own properties. You will be given the option to purchase the house after living there for about three years or so.
There are Terramar Homes for Sale. You can visit the Terramar Three-Bedroom Homes for Sale. You may also check the Peoria AZ Terramar Homes for Rent if you want.

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