RENT FIRST, then BUY
That’s all there is to it! In a “Rent-to-Own” situation, you would sign a lease for a specific amount of time to rent one of our houses. During this time, you would pay a predetermined monthly rental fee while residing in the house. You will have a legal “option” to buy the house at offer conditions (such as price, due diligence duration, closing date, etc.) that you are satisfied with after this time period.
- Save Money for Down payment – Renting before purchasing provides you more time to build up your finances for the final down payment.
- Build your Credit – By agreeing to a rental period PRIOR to purchasing, you’ll have more time to improve your credit, which might decrease the interest rate a lender is prepared to offer you in the future!
- Before purchasing a home, “test drive” it! – Have relatives over, entertain, and take in the ins and outs. You will be allowed to live there as if you were an owner throughout the renting time, providing you the ideal chance to determine whether the house is a good fit for you before deciding to exercise your option to buy it.
- Build equity while reducing risk – With rent-to-own, you basically reserve the right to buy the house at a predetermined, set price in the future. In the past, the value of real estate has tended to rise with time, and in an ideal world, your home’s worth would increase even while you are renting it out. It’s possible that when the time comes to deliver the money to buy the house and take possession of the property, the house will be worth MORE than you really paid for it! In other words, you may buy the house with immediate equity!