How to Start With Rent-To-Own

You’ve perused through our manual, pondered for a bit and finally made the decision that rent-to-own is a wise investment. But getting the rent-to-own process started may seem like a daunting task. Although there are certain responsibilities that come with the process, with some sound advice and guidance, we can point you down the right pathway.
The following is a step-by-step strategy on how the rent-to-own program works:

Step #1: Select a Property

You can begin your search by looking through the variety of homes available for you on the Internet. Fortunately, we have millions of listings on the rent-to-own labes with locations nationwide. Once you’ve narrowed down your search to some of your top favorite properties, you can contact the sellers and set up an appointment to view the homes. This is a great time to meet with the sellers, ask questions about the property and get a feel for the home. While you’re there, make sure that you inspect the property thoroughly.

Keep a close eye on items that may be in disrepair or damaged. Important questions can include the age of the home and problems the seller may have encountered along the way. The inside and outside of the dwelling is important. But you should also explore the surrounding neighborhood and city. With some time spent investigating the community, you’ll be able to determine if it’s a place that you would like to call home.

Step #2: Seek Advice from the Professionals

After you’ve found a home that you just can’t live without, it’s critical that you do more background homework. Your first consultation with the experts should include an experienced mortgage lender. They’ll be able to provide advice on credit repair and options available to pay for your home. While a credit score of 580 may qualify you for a loan, lending restrictions have tightened in recent years. You may encounter lenders to require scores 620 and above. Remember, the higher your credit score, the more likely you’ll be able to qualify for financing on the home of your dreams.

If you have a credit history with blemishes the professionals will be able to provide insight on how to bring your score up. This includes paying monthly loans, credit cards and utility bills on time. If there are items that shouldn’t be on your credit history, work on getting them corrected quickly. This is also the opportune time to investigate further on the history of the house you would like to purchase. Based on the seller’s comments, do your own research to confirm what they are telling you is true based on previous transactions. To make this a positive rent-to-own leasing term experience, the seller should be trustworthy and reliable.

Step #3: Implement the Option to Purchase Contract

After you’ve talked to the professionals, you’ll have a good idea of what the rent-to-own purchase contract entails. One of the last steps before moving into your dwelling is a meeting with the seller. At this time, you’ll develop the lease option agreement with the seller of the property.

The process may involve some legalities that you may not be familiar with. This would be the best time to enlist the help of a real estate attorney. As an expert, a lawyer will be able to explain the various clauses that come with your real estate agreement. The attorney can also look over the propositions made by the seller and verify that they are sound and honest. This may seem like some extra work, but the additional guidance prevents you from falling victim to any type of illegal behavior.

Step #4: It’s Time to Move In

Once you’ve signed the option to purchase agreement, you’re finally ready to move into your home. But your work doesn’t end here. The rent-to-own experience can be rewarding. You just need to put forth additional effort.

If you’re looking to reap the many benefits, you need to be diligent about building a strong professional profile within the terms of your agreement. You can do this by raising your credit score through paying your bills on time. Additional income saved allows you to put away money for a down payment.

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