Invest in a Lovely House That Suits You Best

Rented house (Photo credit: lyman erskine)

For many people living in rental homes, their goal is to be able to buy a home of their own at some point. This however remains a pipe dream because just when they think they have what it takes, something happens and the money they have saved is diverted. This of course is very frustrated and makes life hard.


Many people are totally frustrated by the current banking systems because the make it very hard for one to qualify for a mortgage and without a mortgage, it is next to impossible to save all the money you need to buy a home. But is this the end of the dream? Indeed there are a number of options in the market to help you out and one of them is getting into a lease to own agreement.




Rent to own homes refers to a special kind of a lease made between a home owner and a potential buyer over a particular property. The buyer simply rents the home and has the interest to buy it after a couple of years. The two parties agree on the sales price and the monthly rentals to be paid. If a mortgage is out of reach, this is a great option that benefits both parties while protecting their interests.



This method is both beneficial to the landlord and the person renting. When you want to go to such an agreement, it is good to have a legal representative. This is because he or she will be able to explain the terms much better and if there will be any problem they act as witnesses. When one starts living in the house, he or she is free to change whatever he does not need or rather what he does not want. In short one can change the outlook of the home. Or renovate it.



If do not qualify for a mortgage now, you can begin to prepare your finances in order to qualify in the future. Meanwhile, you can put down a deposit for a home and continue paying monthly rentals and when you do qualify for a mortgage, you can go ahead and buy the home. You and the seller must agree on the deposit amount and the monthly rentals. The lease therefore has that clause that allows you to buy the property after some time.



This time period also gives them the chance to accumulate savings which they can use to buy the said property. Should the potential home buyer chose not to exercise the purchase option for the property, they forfeit the fees and rent paid that far.  Some lease options may provide a clause that allows the potential buyer to sell their option to buy, thus recovering some of the money paid in terms of rental and down payment.



Rent to buy leases are becoming more and more popular and are a viable option towards home ownership especially for buyers who are do not qualify for mortgages.