| What may not be obvious are the benefits
of a rent-to-own home, versus buying a home in the traditional method
of a mortgage.
When you buy a home using a
traditional mortgage based purchase (borrowing money
from a bank or mortgage company), you will incur larger fees at closing.
With many
rent to own homes there are no upfront fees other than a
damage and/or pet deposit. Some rent to own homes
do charge money upfront, so be sure to read the details
before deciding. A portion of your monthly rent is
applied towards the purchase price of your home.
The percentage of the rent applied towards the purchase
of the home will differ depending on your landlord's
contract with you. Try negotiating your rate
before signing your contract. Some landlords are
flexible. Another benefit is that you are not
locked into a mortgage and thus resulting in less risk
on your part if your financial situation changes during
the length of the lease. Rent to own (a.k.a. lease
to purchase) rental properties can be a good decision if
you are considering buying a home. Make sure you
review the rent to own contract very thoroughly.
Some landlords have more generous contracts than others
so be sure to shop around in your area before making a
commitment. |
