Do you want to become a homeowner, but you have a mistake in your past or a blemish on your credit report holding you back from buying the home you dream of? We can help you buy your dream home using a rent to own agreement. Don’t wait, become a homeowner today!
Many people who are saving up their funds, hoping to become a homeowner fail to ever look at the benefits of using a rent to own agreement to buy a home. Most people don’t realize how helpful and beneficial the process can be. Don’t rule out buying a house right now just because the traditional loan options aren’t working for you. Using a rent to own agreement can help you find and secure your property today, instead of years down the road.
Who It Can Help
A rent-to-own agreement for purchasing a house in San Antonio can provide several advantages to buyers, including the opportunity to prepare for the purchase and settle down without relocating frequently. Although waiting is an option, many individuals are eager to establish a permanent residence for their families. A rent-to-own contract can be beneficial in various circumstances, allowing people to fulfill their dream of owning a home. What makes this arrangement appealing is that it affords buyers the necessary time to get their affairs in order, without having to reside in another rental property.
Bad Credit
If you have a poor credit score, it can be challenging to obtain loan approval, and even if you do, you may be subject to substantially higher interest rates than those with better credit. However, with a rent-to-own agreement, you can secure the property, pay a monthly fee, and finalize the purchase at the end of your lease period. This allows you the necessary time to enhance your credit score and prepare for the actual acquisition. During this period, it’s crucial to work diligently on improving your credit, and you can take advantage of free credit reporting tools.
Lack Of Savings
Generating funds for a down payment can be a daunting task. After paying rent, utilities, family expenses, and food bills, there may not be much left to save. However, waiting years to purchase your ideal home is not the only option. With a rent-to-own agreement for a property in San Antonio, you can move in right away and have an extended period to save for a down payment with a traditional lender, ultimately enabling you to purchase the home outright.
In addition to a down payment, there are other expenses to consider when buying a property in San Antonio, such as moving costs, storage fees, repairs, painting, landscaping, and new furniture. It’s crucial to have some money in the bank to cover these miscellaneous expenses before officially becoming a homeowner.
What To Expect
When you buy your dream home using a rent to own agreement, there are a few essential factors to consider.
Firstly, you should anticipate paying higher than average rent, which is intended to safeguard the seller’s interests and reduce the likelihood of defaulting on the agreement. In several agreements, a portion of the additional rent is allocated toward the buyer’s down payment on the property.
The lease term typically lasts for about 2-3 years, although these timeframes are not set in stone. The buyer and seller can reach an agreement on any duration that suits them best.
Moreover, most agreements require an option fee to be paid upfront, which once again protects the seller’s interests, secures the property, and provides the buyer with the option to purchase the property at the conclusion of the lease term.
Why Sellers Love It Too
Selling a property through a rent-to-own agreement also has several advantages for the seller, including:
- A higher likelihood of receiving the asking price for the property
- The ability to obtain some cash upfront for the move to a new property
- Creation of a steady monthly income
- Faster sale of the property
- Transfer of some of the ownership expenses to the prospective buyer
- Retention of all monies paid towards the property in the event of a buyer default.
If you’re eager to own a home in San Antonio but are not yet ready for a traditional mortgage, consider the benefits that a rent-to-own agreement can offer.