Jeff Adams real estate tips Home to the best rental deal and safety you have decided to go for a rent-to-buy home deal. The lease option can be quite helpful as it allows you to make a major step towards home ownership without having to meet strict mortgage supplies. Here is some useful tips to help you with this.
Make sure that buying the property is right for you.
You have to be very certain that you want to live in the respective city and in the respective house in the coming years. This is with a rent-to-buy home deal you are making a major obligation. If you decide to leave the property before the agreement expires, you will most likely lose the money which you have been saving towards a deposit. Confirm that the property is in excellent condition and that it has the optimal location.
Do the math to confirm that deal is reasonable to you.
You have to prepare for making all necessary payments as part of the rent option. You have to ensure that you will be able to keep up in order to buy the house finally. It is typically between 1percent and 2 percent of the sales price of the property. It is up to 20 .
times lower than the deposit which you have to pay with a mortgage
You have to ensure that the rental rate matches your budget perfectly. Since the typical rent-to-buy agreement is for three to five years, you have to give for future changes in your income and spending, especially if you plan to have children. Use the information that the property sales price will remain fixed to make an estimate of whether you will be able to afford paying mortgage on the property eventually.
Prepare a plan for improvement your mortgage chances.
You have to work towards building a strong credit record and securing stable service income. In case you have bankruptcy, you have to check whether you will be legally entitled for a home loan after the lease option agreement expires.
Finally, you have to discuss with the seller. They most certainly want the rent-to-buy home deal to work out as much as you do so they will be open to negotiation. You should work out an affordable price and make provisions for accidental late or missed payments.
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