If you are looking to rent to own a home, here are soem tips to get you started.
It is a good idea as the first step, to get prequailified. Meet with a local and trusted bank or mrotgage company. Stay away from internet lenders. You need to find out how long it will take you to get a mortgage so you know how long of a lease your need. As well as what you will need to do to be quailified by the time that lease is up. You can get prequailified at no cost at most truste dlenders.
Then you need to know what price range you will be able to purchase in. you do not want to lease a home out of your price range as you may never be able to purchase it.
You may not have the resources to find teh properties that are not being offered as lease purchase already. Your next step should be to work with a buyer broker in the area you are looking, they can search rental listings and ask the owners or listings agents on your behalf if they would be willing to complete a lease purchase. A biuyer broker gets paid when teh lease is consumated and tehn a commission when the sale closes, they should not charge you anything else for their service.
As rentals are at a low right now, the other place to look is houses on the market for sale that are not selling. Your agent could contact the listings for sale to see if they are in a position to lease purchase the property.
Once you find the property you need to negotiate both the lease and the purcase part. First the lease, make sure the lease is as long as teh time the bank told you that you need to get a mortgage. Make sure the monthly rent is at or below market rent, dont overpay.
for teh purchase you want to negotiate your price, make sure your agent lets you know what the house is worth in todays market. For the option part soem sellers will want a deposit for the purchase. you will want to make sure they are crediting to you part of teh monthly rent you are paying towards your down payment and closing costs. Shoot for 8% of the purchase price divided by how many months you are renting. 5% covers your down payment and 3% covers your closing costs. Now if you do not purchase, you do not get any money back or any credit.
Now that you have some knowledge and direction, you can go forth and look for your dream home.
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