Checkups Keep Your Home Ownership Alive
To Own Homes can be a great opportunity to start building equity
in a home through Rental Credits while you are leasing it. The downside
to a Rent To Own Home Agreement can come if the tenant cannot qualify
to purchase the home at the end of the lease period.
your goal to become a homeowner means making sure that you qualify
for a home loan when the time comes. Many
sellers that offer Rent To Own homes actually require that their
tenant/buyers participate in a Credit Monitoring and Repair program
during the lease period.
be discouraged by this - it is in YOUR best interests as well as
the seller's. While it may require a little time and expense on your
part the result is well worth the investment.
Sure that Your Lease Period Is Long Enough
you have experienced a bankruptcy or foreclosure it can be two to
three years before you qualify for a mortgage with most lenders.
To insure that your goal of home ownership becomes a reality you
may want to contact a mortgage professional and allow them to review
your credit before you enter into a Rent To Own Agreement.
should be able to give you some idea of how long it will be before
you can qualify for a mortgage. Make sure that your lease period
is long enough to cover this time period. Also remember that you
need to take the steps necessary during this time to get your credit
Not Just Your Credit That Counts
your credit rating is important but just is important is making sure
that your seller is financially solid. Asking questions about your
seller's financial condition can save you from major problems later
in the game.
seller should have no reservations about showing you their credit
or payment history. After all they will almost surely ask you about
yours. In addition to knowing your seller's financial condition your
should also check to make sure that there are no liens or encumbrances
on the property or the seller that you are purchasing the property
there is a mortgage on the home that you are purchasing (as is usually
the case) you may even want to request that your rent to own payments
go directly to the lender or that you receive periodic validation
that the current mortgage is being paid as agreed.