How to rent to own a house? How many times have Real Estate Agents received phone calls from "for sale" signs posted in front of their listings from renters or future homeowners....who cannot purchase right now.....but are quick to ask... "Hello...I was wondering if the seller of this beautiful home would be willing to rent to own?" A lot of the calls are coming because of the news media reporting...that homeowners are desperate to sell their homes and cannot because this is a buyers market. Truth is...there are some sellers who would not mind doing rent to own if they could get a better price by doing so, particularly if days on the market is long (which usually translate into the home being overpriced in the first place).
Most Real Estate Agents get these calls all the time....and yes they can sometime be annoying....but here's how not to be annoying!
1. To Rent to Own....means that the house has to be in your income and credit limits......meaning if the house is for sale for $200,000.....you must be able to afford to pay that mortgage.......if you are just going by the way it look on the outside and like the neighborhood, but can only afford a $150,000 mortgage...move on.
2. Be Prepared......Contact a Mortgage Broker or bank to find out what qualifications you currently have to purchase. Many of the calls come from people who have no idea of their credit qualifications....and the first question a good agent will ask is "how's your credit?". Could be you can purchase now and don't know it...or it could be that you won't be able to purchase for a very long time............and this is a turn off for any seller that may consider rent to own.
3. Do your homework.....most rent to owns require a non refundable down payment sometimes equal to a real down-payment if you were to purchase.......have the funds ready if you are serious.....
4. If you need to be in credit repair to purchase....then be in credit repair with a professional.....these documents will show how serious you are to purchase in the near future and you will be able to get an real estate agent to listen to you and take your case to a seller.
5. If you find that right rent to purchase home, treat it like a purchase..do your home inspection....hire a Realtor to help you do it right!
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