The Fundamentals of Rent to Own Your Home in Snellville Georgia
Today’s lending market has a loan for almost everybody.
However, there are customers who are not suited to qualify by regular bank lending standards.
It might be for a variety of factors mostly pertains to not having enough of a deposit or a few bruises or dings on their credit report.
The rent to own design permits an occupant to pay the same rent as they would if renting while accumulating the down payment. This is all done while living in the home they want to purchase shortly.
It may not appear like there is much for a seller to gain from a rent to own circumstance. After all, who does not wish to sell the home and take their money and run, literally?
There is a group of sellers out there who aren’t in a rush for the money financing and see it as an opportunity to make a little extra money before the house is sold.
Sellers may continue to benefit from property tax deductions and perhaps home mortgage interest.
If for any reason the purchasers balk on the deal, the seller had income for the home throughout the time the buyers remained in the house.
Better Rental with Caring Upkeep
Both sides win when it concerns property condition on rent to own properties. Renters usually are looking at better homes compared to most of the rental market.
On the other side, the seller now has tenant-buyers with a vested interest in the house and will maintain it as if it were their own as it might be in the near future.
The Rent to Own Agreement
Four standard parts are found in most rent to own agreements. They are the opti
on money, the purchase price, the monthly rent and the maintenance fees.
Keep in mind all of these are negotiable and don’t all appear in every transaction. It depends on what the seller and the Tenant-buyer negotiate.
The option money is money provided to the seller that enables the buyer the choice to buy the home later on. This option expires if not used.
The sellers generally keep the option money.
The purchase price is the price the purchaser will spend on the house once they exercise the option to buy.
The purchaser may choose if the market drops to ignore their option or try to renegotiate.
The rent is the month-to-month commitment while in the option period.
Maintenance is an alternative the seller can include. This would be an extra cost to pay property taxes, repair work, and basic house maintenance like lawn care, etc.
Need to You Rent to Own Your Home in Snellville Georgia
While rent to own isn’t really for everyone, it is a good option when a would-be purchaser and the right seller both see the value in the arrangement.
The purchasers get time to fix problems preventing funding today but still get to live in the property.
The sellers get option money with the potential of a future income from the rent paid before the tenant-buyer purchases the house.
Purchasers have to work especially diligent to meet the requirements of the bank to get a loan to purchase the house. Check your credit and talk with a loan provider early in the rent to own process so you can develop the right items that will make you a good risk to get a mortgage. Then you can buy out the seller and start to create a legacy for your family. We hope you will.
As in all business transactions, it is recommended that you consult an attorney before signing any documents.