5 Great Benefits of a Rent to Own Home
Secure a Home Right Now
You may not quite be able to afford buying a house yet, but you can still start the process right now. This is especially ideal for people that have their eye on a particular home, but aren’t quite financially prepared. You don’t have to be able to afford a down payment or even qualify for mortgage to secure your dream home. Although a rent to own home usually does require some deposit, it is much lower and usually very affordable. The length of the lease also allows time for you to start building up your credit so you can qualify for a loan by the end of the lease term, if necessary.
Start Building a Permanent Home
You may already have a house in mind to turn into your home or a neighborhood that you want to become a part of and build a life around. Opting into a rent to own lease will allow you to start building roots somewhere even if you can’t quite afford to become an owner yet. Instead of wasting time in a temporary residence, you can start settling into a permanent situation. As a bonus, you can be free of the stress of having to move later.
You Don’t Have to Commit Right Away
It’s hard to take that leap into becoming a homeowner of a house that you really aren’t that familiar with. You can hire all kinds of experts to inspect a house for all kinds of problems, but there are some things that you just won’t know until you’ve really lived in a house for a period of time and made it your home. Even if there is nothing inherently wrong with it, sometimes a house just doesn’t feel like the right fit. With a rent to own agreement, you can work towards owning a house without having to fully commit right away. This way you have time to discover the place’s quirks and perks and decide if it’s right for you. It can also allow you time to explore the neighborhood and learn about the community.
Lock in a Lower Price
While you wait to build up your savings or your credit score, you can secure a house to purchase in the future without worrying about fluctuating market prices. Many contracts will have a set purchase price that will stay the same even if the market value increases. This way you can take advantage of low house prices even if you’re not quite ready to buy.
Work Towards Ownership
It can feel pretty bleak and wasteful throwing monthly payments towards a place to stay without getting any permanent value from it. If you choose a rent to own situation, you are still paying a monthly sum, but in the process you are gaining something more permanent. You are working towards ownership. Paying rent turns into more of an investment rather than a way to throw away your money.