As a Naperville Realtor, I am often asked if there are any "rent to own" options available in or around Naperville....
The people looking for this rent to own option are usually down on their luck, have bad credit scores, and no cash in the bank. They can't afford to buy, but they want to avoid the stigma of being a "renter".
My little family was all of the above a few years back. Money was tight, and we found a nice home in a nice neighborhood. My landlord offered us a rent to own option. He was so generous, he was even going to finance it for us...
However, his interest rate was high, his suggested purchase price was top dollar, and the real estate market had not yet bottomed...
Today, we are back on our feet, and home prices and mortgage rates are both lower...
So if you are thinking of a "rent to own", my advice is this...
Don't do it.
Go rent the home you want. Live there. But don't sign a rent to own agreement. Why? Because you will pay higher rent than necessary, and the terms are always slanted to the landlord/owner of the home...
While renting, you can save up some money and work on your credit scores (a good mortgage broker can help with this).
There is absolutely no shame in renting. And there are several advantages...
When the time is right and you are ready to buy, I assure you that there will be plenty of homes to choose from.
Ken
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