Rent to Own
What is a rent to own? The actual paperwork is called an Option to Purchase. That is a written offer on a house or duplex to purchase the property in a given time, at a specific price. The Option to Purchase is normally used for buyers who do not have the down payment to complete the purchase. So the buyer moves into the house, pays rent, and many times a portion of that rent is applied to the down payment.
The Option to Purchase is good for a buyer who finds a house but has a low credit score. In that scenario the buyer needs to find a lender who is great at credit score couching and credit repair. The buyer’s credit score has to be raised as quickly as possible. It is very important to choose the right lender in this situation. The wrong lender could lead to a tragic and costly loss for the buyer.
The key is to work with a local lender as well as a local Real Estate Agent. I have no idea how many fake lenders and Real Estate sites are lurking in the dark world of the Internet. Based on experience, Internet lenders may or may not really exist. There are a few large companies that actually lend money. Remember there are a number of fees involved in the lending process. Do you feel safer putting your charge card number into a web page and pressing a button? Or do you feel more secure walking into a local bank, sitting down face to face with a lender in their office and handing over a check?
The key to credit repair is to preform a specific set of steps. At the very least you have to give you Social Security number to the lender so they can check your credit score and print a report. There may be a list of loans on that report you never heard of. There are companies who file fake reports, and for a few hundred dollars will remove that negative information from your credit report. How do you think they got your Social Security number? From the Internet. Be careful with whom you share your information. Real Lenders are required to use extra layers of Internet security.
The key to a successful Real Estate transaction is to choose a local, experienced team. At the very least that team will begin with a Real Estate Agent, a Lender, and Home Inspector. Each person will be state licensed and know their particular fields. The Real Estate Agent will know how to conduct specialized searches to save time, establish marker value, and find the home you want at the best market price. The Lender will guide you to the right loan for your situation and needs to work with the Real Estate Agent to see certain events and plan for them before they arise. The Inspector will know the local codes, and features of a home that may be a concern, and explain basic home maintenance and financial planning to achieve that goal. The team will also need a good Title Company to ensure all the paperwork is signed and funds are collected and properly distributed. Each member of the team has to be a local expert in their field to avoid costly mistakes. The Internet offers a broad range of opinions that may or may not apply to your local circumstances. You need the right experts in the right fields, in your local market to complete a purchase. Don’t be fooled by Internet parties claiming to know every local law, code, and Real Estate Market.