With the real estate market being what it is today, it may be tempting to follow through on one of those ads in the newspaper or on Craigslist that practically scream of a great deal on rent 2 own homes in San Antonio Texas.
While this option can be a win-win for both parties, is it the best method to get into a great house?
You may not be able sell your home right now, or if you’re the buyer, maybe you aren’t able to get a home mortgage loan with bad credit.
Well, you may be able to get into a great home that you love and feel a sense of ownership (more than if you were to just rent a house the normal way) sooner than you thought!
However, it is always recommended that you ask the following questions when meeting with your possible rent to own house seller:
Here’s a few important (smart) questions to ask a local San Antonio rent to own house seller
“What is the length of the option to buy the house?” –
With a rent to own house agreement (also called a lease option home), there’s usually two parts. First, a normal rental agreement. Second, the option to purchase the house at a pre-determined price on a date in the near future. Usually the timeframe is at least a period of 2 years. Anything less than that and it’s possible that you may not achieve the credit score goal that you’re aiming for to buy the home. You need this time to weigh your options and to see if things are going to improve for you in the future. Of course, the longest option agreement period would be the best for you… in order to give you more time to get back on your feet credit-wise or financially so you can get a traditional home loan.
“How much of my rent will be put toward my purchase price?” –
You can probably find horror stories all over the internet about how some tenants were strung along thinking that they were paying a higher percentage than what they actually were for their future home among other factors with this option. Ask the seller! Recent federal laws have made applying “down payment credits” from your monthly rent very difficult… if not illegal in some areas and situations. Usually, the monthly rent on a rent to own house in San Antonio is a little higher than the monthly rent than on a non-rent to own house (because you’re paying for the ability to purchase the house at a pre-determined price which ties the seller down, as well). So just make sure to ask the seller what or if any portion of the rent is applied toward the purchase price in the event you do decide to purchase the house at the end of the option period.
“Who is responsible for repairs and damages on the property?” –
This depends upon the agreement. It can really vary. Generally, you as the renter are responsible for general maintenance and upkeep and for minor things. But, if it’s a larger repair… often times the house seller / landlord will be responsible for the first six months or so of the option period. After that you may have the responsibility for the repair. Again, this varies with every seller. If you’re working with us on looking for rent 2 own homes in San Antonio… we’ll walk you through how our rent to own program works and answer any questions you may have anytime.
“If I’m not able to reach my goal after the option period, can I extend?” –
For tenant buyers that work with us… we’re usually pretty flexible in working with you to help both of us reach that ideal end goal… of you purchasing the house! 🙂 As long as we can see that you’re on track and trying to make things work… and the extension makes sense for us both… we’d be happy to work with you on making your dream of home ownership a reality. If your future seller is honest and fair, they will usually give you this option, too. It’s always good to have backup plan. Just do your homework and make sure you talk to the seller of the house FIRST and ask them these types of questions before you sign on the dotted line.
“I don’t have the best credit score. What do I need to do to lock in this home?” –
Again, any reputable San Antonio Texas rent to own house company like Lone Star Real Estate Solutions, LLC will give you resources and connections to help you improve your credit score while you’re renting the home from us. This may include a referral to a reputable and honest San Antonio mortgage broker… credit counselor… or even our own internal guidance along the way is an option. Of course, we realize that a lot of the tenant buyers who work with us on getting into a San Antonio rent to own house probably have bad credit. That’s OK. We’re experienced in working with people in that situation. But as always, we have to protect our investment as well and we’ll only work with tenant buyers that show they’re committed enough today and a safe enough bet that they’ll consistently pay the rent on time and have a great chance of actually qualifying to purchase the home when the option agreement is up.
Last, but definitely not least,
“May I take a copy of the rent to own agreement to my lawyer?” –
The answer should always 100% of the time be “YES!” If you’re working with a landlord / seller of a rent to own house here locally that doesn’t want you to run your agreement by your lawyer or CPA (or other trusted advisor) you should RUN THE OTHER WAY as quickly as possible! Nothing in the agreement should be hidden or glossed over. There are some really important elements in a rent to own / lease option agreement that you really need to be aware of… and we want to walk you through the agreement line by line before you sign, so that we’re both fully on the same page and can go into this with confidence and trust. So, make sure that you take plenty of time to review the agreement to make sure you understand everything and how it works. Any reputable rent to own seller will help you understand the agreement and encourage you to run it by a trusted advisor of your own.
So, What’s Next? Seeing Available Rent 2 own homes in San Antonio
With these six tips, it should be fairly easy to weed out the good sellers from the shady ones.
It’s always harder to find the better ones… the reputable ones… with REAL rent to own homes and with a great seller behind them. So when you do manage to find a great rent to own house seller, you won’t be sorry that you went the rent 2 own route like so many others have.
So, your next step may be to go ahead and dive in and see what available rent to own homes in San Antonio Texas are out there, right?
Well, if you haven’t already started your rent to own / lease option search… START HERE!
Simply fill out the form on that page and start your search to see what we currently have available.
Our rent to own houses in San Antonio tend to get snapped up fast… so be sure to get on our list and open the email alerts we’ll send from time to time when a new rent to own house becomes available.
Also, if you’d rather chat with someone about our program or about your situation… call us anytime at (210) 791-9242 or shoot us an email through our Contact Page.
We’re here for you and we look forward to working with you 🙂