Rent-to-Own! What’s that all about? Is it possible to Rent-to-Own a home?
Well, from what I’ve heard yes it is possible. Have I ever seen it done? I’ve read about it being done in the real estate industry. However, I have never witnessed one done successfully. I am aware of a young woman renting a home for the purpose of owning the home and within a 60 day period of her due date to acquire the home, she was told that family members were moving in so she would have to move out. Huh? But she paid her deposit and whatever monies were agreed to be added to the purchase price as a credit however she still had to leave. She did not get a refund of the monies she paid, she had to move with new money out of pocket and that was the end of the story.
As I said, I have read of rent-to-own being done successfully so I would gather than it is possible. If you decide to go that route I would strongly suggest hiring an attorney to protect your rights. Rent-to-own is a contract and any for rent-to-own should be handled legally with an attorney on your behalf.
Many people that I have spoken to think that it’s easier to rent-to-own instead of going the traditional route of purchasing a home. Granted mortgage restrictions may have gotten tighter since the 2008 meltdown however it’s not impossible to get mortgage ready. You just have to be ready to put in the work like anything else. Look at it this way–Let’s say you think you found your dream job with just the salary you wanted, perfect travel distance door-to-door, the perfect boss, employees who you love working with, everyone loves you and thinks you are the best thing since sliced bread. You show up on the first day eager to do your best to please your boss and show everyone that you’re the best person for the job. You’ve put in all the work to prepare yourself to be the best employee and then you show up and BAM! it’s the exact opposite of what you expected. You put in all the work and now you are very disappointed. This is the same way you have to think about getting mortgage ready. You have to be willing to put in the work necessary for a YES from the mortgage lender you choose.
Rent-to-own may be an option but it’s an option with risks. Choose to get mortgage ready for an easier yes from your chosen mortgage lender.
If you have a desire to get mortgage ready, me and my partner host a free credit seminar. To be informed about it, reply to this post!
Here’s to your new Home!