Like all significant agreements, renting to own is beneficial to both the seller and the buyer.
But, let’s take a look at the advantages for you as the buyer.
In a “rent-to-own” agreement, you, as the buyer, can freeze the purchase price of a home for a year (or two) as you live in and pay rent to the seller. Since most markets appreciate, you’re locking in a good deal with built-in equity.
During your time as a tenant-buyer, you’re making payments contributing to the sales price’s down payment. It’s like built-in savings account that you cannot touch.
You also can test drive the house, the neighborhood, the school system, etc., before buying. If it turns out you were wrong about the whole thing, renting to own a lot less expensive than purchasing the house outright and finding out you’re stuck with it later.
The extended closing date allows you the time to clear up any credit issues, save down payment money, and get pre-qualified for a loan. When you meet with a mortgage broker, you’ll understand the amount of debt you can shoulder each month and still be approved for a loan. You’ll also discuss down payments and loan types, making you a well informed future borrower.
Essentially, renting to own gives you the time to get your finances in order while you’re living in your dream home.
If you’re ready to see how this could work for you, contact us, and we’ll answer all your questions.