Is Rent to Own a Good Choice?

Rent to own is one of the trending topics all over the globe in the past few years. Rent to own is where you lease a home by having the decision to purchase it on the later part during your lease period. Through this, the owner cannot market the house as for sale to other buyers because he or she is bound by the agreement to sell the house to you with a particular price. Remember that there are two parts of the agreement; the first part is the standard lease and the second part is the real estate option.

Standard lease agreement spells out the monthly rent and other terms or agreements. While the real estate option is where there is an agreed price between the seller and the consumer. The seller can sell the house if you are willing to purchase it, but you also have the right not to buy the house if you don’t want to.

The seller is responsible of paying the house insurances and even the taxes while your responsibility is to pay the monthly payment.

Renting is different from rent to own. There are more advantages that you can get if you will try rent to own option. With rent to own you can pay monthly and you can even purchase your home if you decide to have it. However, with renting option, you can not have the ability or chance to have the house that you are paying monthly.

In most cases, it is also possible to renovate your rent-to-own home, which could be great news to everyone, as long as the owner is informed and agreed with it. But there is no need to worry about it because most owners would love to see changes and improvements in their homes.

There are also criteria’s to be met in order for you to be able to purchase your own home. The criteria’s are, should have a good income, must have a good credit score, and a 5% down payment is needed. Basically rent to own and rent to buy is most likely the same.