Important Pros And Cons Of Rent To Own

Rent to own has become a major trend in the housing business and market. Everyone is eager to stop renting all the time and come home to a home of their own. Rent to own has become a way for them to own a home amidst the expensive prices of brand new houses on the market. But if you are one of those looking for a home, you are sure to have heard rent to own on the internet, on the radio, on television, and print ads and almost anywhere. You may be aware of what rent to own is all about but the thing is, before you take this big leap you need to weigh out the consequences and the pros and cons of the deal.

Like every deal, there are pros and cons. And it is important to know the pros and cons of rent to own homes. Not only because you will spend a lot of money, but because you also need to protect yourself and your family. Here are the advantages and the disadvantages of rent to own that you must need to know.

Advantages of rent to own:

• Anyone can get one. Getting bank loans and mortgages need certain qualifications, the most important is being financially secure and with good credit ratings. While with rent to own homes, anyone can get it, and it usually depends on the owner of the property. Usually, as long as you can pay the option fee and rent premium then you are good to go.

• Maintenance. During your lease period, it is the landlord who pays for the maintenance cost. This becomes one of your biggest advantages during your lease period.

• Rent to own homes has no closing costs. One of the more important information on rent to own homes is that when you move into a rent to own home and choose to buy it, you will not have to pay for closing costs such as title fees, appraisal fees and the like. This saves you thousands of dollars in these costs than you would when you buy a brand new house.

• Credit clean up. This is probably the most important advantage with rent to own, especially for people with bad credit. You will be able to save up during your lease period and be able to fix your credit to get you a loan to pay for the house.

Disadvantages of rent to own:

• High sales price. Some rent to own home sellers may want you to pay a higher price for rent to own rather than those cash buyers. Always keep in mind, that when buying a home, whether rent to own or not, it is always negotiable. Though you can always negotiate, because there are more sellers than buyers in the housing market.

• Lease cancellation. This is probably one of the greatest disadvantages of a rent to own home. Sellers may cancel your contract due to late payments and other factors, and you will lose your option fee when this happens. A purchase option in the contract might help you here.

• Upgrades you make become the seller’s property. It is not advisable to make major improvements in rent to own homes, because on the event of a cancellation of contract, these upgrades and improvements that you have made directly become the property of the seller.

Now that you know the major advantages and disadvantages of rent to own, you may be looking for rent to own homes in the market. Here is a list of rent to own homes:

• Tn

• Hampton Road

• NC

• Wi

• Illinois

• Wa