Everybody wishes to be a home owner. Having a home of your own gives you as sense of security. You will have peace knowing the you have a permanent place to stay for the rest of your life. You also have the freedom to do what you wish when you have a home of your own. Owning a home gives you comfort and peace of mind. There are various ways to own a home. The most common is renting, and purchasing. The other option is rent to own homes. The following are vital characteristics of rent to own homes.
Rent to own homes are homes that have leases with an option to purchase or there is a condition to buy the house after a specific period. In such an option, the rent you pay the landlord includes rent cash and money which you contribute towards a future down payment. Rent to own home happen infrequently and they arise due to a number of factors. If someone who owns property has a home in the market which has taken long without getting a buyer, he or she can make the house a rental with the option of rent to own given to the tenant. In some cases, a tenant in a house can get comfortable but the landlord wants to sell the specific house. It is possible for the tenant and the landlord to make a rent to own arrangement. A home buyer can also notice that a particular house has been in the market for a long time and they decide to ask the owner for a rent to own offer.
If you are looking for a rent to own property, you can check rent listings that have the option. You can also use an experienced realtor to find one because they know where to find them having been in the market for a long time. In rent to own homes, you have the option to any of the two lease contracts. One contract is a lease agreement with option to purchase which gives you the right but you are not obligated to purchase the home after the end of your lease term. If you are not willing to buy that home, you have the freedom to leave it but you have to remember that you will lose your money you paid extra on your rental payments. The other contract you can sign is the lease agreement with purchase agreement where you have a legal obligation to purchase the home at the expiry of lease period. You should carry out a home inspection to ensure that the home is okay so that you will not be surprised once you become the owner. It is also recommended that you are pre-approved for a mortgage so that you are sure you qualify for a mortgage.
Once you sign the contract, you will settle on a specific price. You are also required to pay an option fee which is a particular percentage of the purchase price. Maintenance roles should also be clearly defined in the contract. You also need to know that the rent you pay includes rent and down payment savings. At the near end of the lease term, you are supposed to apply for mortgage.