Your rent to own home search has begun and your family is thrilled at the idea of owning a home using this method…
BUT BE CAREFUL!
There are some pitfalls to be aware of that can cost you BIG if you don’t take time to learn how a rent to own deal works.
Regardless of your current situation, this FREE advice center can provide you with all the knowledge you need to help make sure your future rent to own house becomes your home!
Considered These Common Rent to Own Pitfalls?
Click any question below for an explanation.
Paid WAY above market rent
Seller stopped paying mortgage
Home is worth less than option price
Who’s responsible for repairs?
Option period expired before you qualified
Paperwork doesn’t protect your interests in the property
Don’t know how to qualify for a loan
How much upfront is fair?
How much money will you need to close a mortgage when you qualify?
How much of rent goes toward purchase?
Do you have the option to extend your original option period?
Is there a fee to extend option?
Can the seller change the purchase price?
Paid WAY too much upfront
Home was in preforeclosure/foreclosure
Common Internet Rent to Own Scams
Craigslist seller sends you an email… from Africa!
Can you EVER qualify for the home?
Often times tenant/buyers have the upfront option fee to move into the home but can NEVER actually qualify to purchase the house.
This is because the income levels of the family are too low for a bank to EVER approve the loan at the agreed upon price. So imagine spending 12, 24, or even 36 months living in a home you plan to buy, then suddenly finding out your family income is TOO LOW to qualify for the home mortgage loan!
This DOES happen and it is absolutely devastating!
You can avoid this!
Visit our Buyer’s Section to learn more about how to avoid this!
Even if your family has a high income, you still might be surprised at the amount a bank would lend you in today’s market.
Your debt-to-income ratio is a key number banks use to determine the amount you qualify for. So if you have car loans, student loans, or any other revolving debt, the loan amount you qualify for typically decreases.
Who is making sure you eventually buy the home?
Usually the answer is NO ONE.
The simple truth is, no one cares as much about your success as YOU SHOULD. Unfortunately, there are few resources available to help you along the way until you qualify to purchase a home.
Use this site to help track your progress and to help you find the resources you need to become a homeowner!
Good luck!
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