You have decided, its time to buy a house and you want to move to Lawrenceville, Ga? Have you considered starting with a rent to own agreement?
The Process Of Buying A Rent To Own Home
Many soon to be homeowners have found this an excellent way of moving forward with their dream of homeownership. In This Blog post, you will learn about the process of rent to own homes and how it can be a great bridge from renting to owning your own home in Lawrenceville, Ga. Should any questions come up, we are always glad to clear things up for you.
Rent To Own can be beneficial both to the home seller and the home buyers. When a seller lists their home for sale and advertises that home as a rent to own home, it exposes their home to a larger group of potential home buyers. Rent to own home buyers tend to pay the asking price because the terms of getting into the home via Rent To Own is more helpful to them than by haggling down the price.
The benefit to the home buyer is that they are more likely to become homeowners or at least move into their dream home now even if their credit still needs improvement to get a mortgage, and they need to save some more money for the downpayment.
Each rent to own agreement can be structured in different ways for buyers and sellers; this can be a good thing.
As you continue reading, you will see what to expect before entering into a rent to own agreement in Lawrenceville, GA.
There is no single rent to own agreement that is used to complete a rent to own transaction. That allows flexibility for the buyer and seller to create a deal that works for both of them. Lease-option and lease-purchase are two of them. A Lease-option agreement allows the buyer the right but not the obligation to buy the home during or at the end of the term of the lease. Remember, if you violate the terms of your lease, you may forfeit the chance to buy the home. The other type of agreement is that a lease-purchase is an agreement to buy the house, and the buyers have already agreed to buy the home.
It is essential to know which type of agreement you entered into buying your home in Lawrenceville, Ga. At Fresh Start Home sales, we will ensure that the correct agreement is used and that all interested parties agree on the terms of the contract. We always recommend you have an attorney look over any contract to buy a home.
The Down Payment
When Buying a home via Rent To Own, you will have to pay a downpayment. The down payment is generally a lot less than the 20% most banks ask for you to qualify for a conventional home loan. That amount of the downpayment has to be a significant sum that the seller will be confident that the buyer will be highly motivated to complete the transaction. Many times that downpayment is nonrefundable, so be sure this is the home you want to buy and that you are prepared to do whatever it takes to buy it in the time agreed.
A benefit of Buying A Home Rent To Own is that you can negotiate that a portion of the monthly lease payment can go toward your down payment when you buy it.
Your Monthly Payments
Some people are dissuaded from rent to own homes agreements because they charge a premium for the monthly rent. They miss that part of the premium monthly lease payment is applied toward the homebuyers downpayment. You may consider it a forced saving that you will benefit from when buying your home. When you are negotiating the monthly rent, keep in mind you want to make sure you can manage the new rental payment and still leave you with room to save to buy the home during the lease or at the end of your lease.
Maintenance, Repairs, and Responsibilities
Buying a home rent to own, you need to make sure you have a full understanding of your responsibilities, maintenance and repairs, and the responsibility of the home seller.
The time to be clear about those responsibilities is before you need a repair or some maintenance work to be completed. That is designed to keep the peace between you and the seller Importantly you as the home buyer don’t want to be stuck with a hefty repair bill that you had not anticipated.
While we are discussing these ideas, it is essential to note that it is useful to pursue getting a pre-home inspection on the home before you sign your contract.
Buying a home rent to own typically only gives the tenant-buyer only about one to two years. Rent To Own is about taking the time while leasing the home to improve your credit and save for a substantial downpayment, then go out and get the very best mortgage possible and Buy the home you choose and adore.
Rent to own agreements offer the tenant-buyer an opportunity to move into their dream home while making preparations to buy the house at the end of the lease. The seller also gains a tenant who is motivated to upkeep the home they will soon buy while paying full price and a fair monthly payment.
Well written agreements will make this kind of arrangement a win with bot the tenant-buyers and the home seller.
Working with Fresh Start Home sales will help you find the right house and set up an agreement that works for all parties involved.