What is a rent to own?

Rent to Own definitely seems to be the hot subject of talks over the last year or so. So what precisely is a Rent to Own and is it a good alternative for those wanting to get out of renting and fed up of making their landlord wealthy?

A rent to own is where you lease a house, but you as well be in command of the property by having the strategy to secure it at a later time in the course of your lease period. The property owner is not going to promote the property available for sale, for the reason that he/she is legally bound by the settlement to sell the home to you at a pre-determined rate which you agree on before you decide to move in. There are basically two parts to the deal:

The first is the standard lease that spells out the regular monthly rent, as well as other standard lease conditions.

The second part is a Real Estate Option. This is actually a one way arrangement that binds the Vendor to sell to you at an agreed cost. The Vendor is required to sell if you want to purchase (during the option period), nevertheless you don\’t need to purchase if you don\’t desire to. That is the reason why it is a one way arrangement.

Who settles the property taxes and also insurance for the duration of the Rent To Own?

The home owner is in charge of responsibly paying the tax and home insurance. You are actually accountable for paying the monthly rent (that remains the same thing for three years) and utilities until such time you actually carried out the acquisition.

We are renting currently, exactly how is that different?

This is a technique to help you get started on towards BUYING your own house. A considerable amount of your rent payment will go directly into the purchase of the property you are in. Rather than giving your hard earned money away each month on rent and getting practically nothing to show for it by the end of the year, with rent to own, every month a significant part of your month to month payments (typically 20%) is attributed toward the acquisition of the property.

My credit standing is not very good, would you still support me?

Definitely, in some cases most rent to own companies are able to assist. In case you qualify for a basic rental agreement, then it\’s certain you can be allowed to start your own rent to own arrangement so long as you have a minimal up-front payment. The nominal down payment is usually between 2-3% of the purchase price of the property however may differ from company to company.

Will I be able to have my legal representative check out the documents?

Yes, it\’s a smart idea to have legitimate representation nevertheless, if you wish not to, that\’s okay also. You are definitely recommended to seek advice from a reputable licensed legitimate representative despite that it does not have any regulation which makes this necessary.

Does the entire procedure function the same as a typical sale?

Certainly no, the procedure works a lot faster compared to the regular bank process. Confirmation can normally be given and conveyed within a matter of days. From that point, everything that is required is for you to pay the deposit sign the deal and move in — it\’s so simple as that!

Could I redecorate my house?

Most likely Yes. For as long as the owner is consulted before you start any significant upgrades and the effort is done by a professional trades person. Besides, numerous Rent to Own businesses do not have any issue with it as you are stabilizing the worth of your property which is advantageous for you in terms of refinancing.

If you would like to buy your very own home, most of the time you should meet the following three requirements:

1. Decent Salary

2. Less Than Perfect Credit Score

3. 5% Deposit

In case you\’re losing out on one of the three above as well as you\’re sick of trashing your hard earned cash away, Rent to Own could very well be an ideal option for yourself along with your family.

Lease Option Homes is a marketing channel of Expert Realty Advisors, a company based in Phoenix, Arizona, with lease option sales as the main line of business. The company offers a rent to own program for newly-remodeled homes that are ready.

http://www.leaseoptionarizona.com/ Lease Option Homes is a marketing channel of Expert Realty Advisors, a company based in Phoenix, Arizona, with lease option sales as the main line of business. The company offers a http://www.leaseoptionarizona.com/lease-option-properties rent to own program for newly-remodeled homes that are ready.

Author Bio: Lease Option Homes is a marketing channel of Expert Realty Advisors, a company based in Phoenix, Arizona, with lease option sales as the main line of business. The company offers a rent to own program for newly-remodeled homes that are ready.

Category: Real Estate
Keywords: rent,homes,lease,houses