Introduction
There many ways you can use to acquire a home such as borrowing a personal loan, applying for a mortgage and so on. But you may not qualify to get a loan from lenders due to some unmet conditions such bad credit history or any other situation that may lead to your denial of a loan, you can use this method of rent for home to own a home. In this the owner acts as the bank and you make monthly payments to them.
The information
This method is basically used to give a chance to the buyer to accumulate more savings, correct the credit issues or give time to sell a home. Sometimes the agreement can be terminated. The owners are obligated to sell to you, whereas you are not obligated to buy. This is one reason as to why the agreement can be terminated. Rent for home depends on the lessee.
There are some issues that you should put into consideration before you rent for a home. You should know whether the seller has a competent credit report. This is to avoid your losing your money in the process. The suspicion of the seller can tell you if you are safe to rent that home. You also need to know that the seller can lose the property and also you will be in a position to lose your money too.
The interest charged on the rent for home; vary from one state to another though not a very large range. The range is 6.5% to 9% depending on the down payment and the application strength. This is not a big difference compared to banks. Though there is no guarantee that the price will rise or fall. This is because the owner may decide to increase the price to double the market price.
Also down payment required when you rent for home is still almost the same as that of the bank because it is from one to three percent of the down payment which goes on increasing up to ten percent. Although the price is slightly higher than in the market, you can use this method to buy yourself a home.
Also
There are some benefits that the buyers enjoy during the period they rent for home. The buyer does not worry about the renovation or repair of the home because the owner continues servicing the home until you make all the payment. This is when the seller will give you all the relevant documents of the home so that you will continue paying the insurance and other taxes.
Conclusion
You should be very careful when you rent for home to avoid mistakes. You should also do thorough inspection before you start to rent. You should choose an option to buy the home at any time of the lease period rather than buy at the end of the period. This will give the freedom to walk away by the time you feel to go and still get your back up. The back up is usually more than the rent you have contributed.
