Using a rent to own contract can be a great way to buy a house in San Antonio, however, there are a number of things that you need to keep an eye out for. Learn more about the process in our latest article!
Rent to own agreements are getting to be increasingly popular with buyers in the San Antonio area. It allows people who may have experienced one little setback to eventually discover the path to homeownership. It can help people that are prepared to lay down roots now but lack the funds for a conventional down payment at the current time. It helps people in all phases and situations who wish to get a house right away in the San Antonio area! Below are a number of things you ought to understand and watch out for when using a rent to own contract to purchase a house in San Antonio!
Perhaps not all contracts are the same. You’ll need to look over all the facts to be sure that there is not something in the contract which could come back to bite you. Even the down payment, monthly lease obligations, penalties, and also the amount going to your down payment on the house have to be laid out so there are no discrepancies. You could also be faced with an “option fee” or a percentage of their taxes and insurance costs.
Some leases will require the tenant to manage minor repairs and maintenance to the house before they are technically the owner. When most tenants don’t have a problem with this, it’s important to include in your budget when buying a property in this manner. It’s important to make it clear who is responsible for what so as to prevent any disagreement in the future.
What happens if you’re late on a payment? You don’t want a small infraction to end up costing you the home you want and the money you’ve put into it. Though your down payment will not be that of a loan, it still won’t be anything you’ll want to lose. Preferably, you should be on good terms with the seller so extreme measures are averted for small and infrequent mistakes.
When agreeing to purchase via a rent to own agreement, you’ll need to make certain you have an escape route in case anything goes wrong. If after you move in you discover there is a significant issue with the home, you won’t want to have to be obligated to buy the house or lose your money. Make certain there is a contingency in the contract letting you walk away if there is something fundamentally wrong with the house or the title.
If you have signed a contract but decide the home just isn’t right for you when it is time to purchase, you will be out the down payment you paid upfront in addition to any rent overages you had during the rental term. This can mean thousands of dollars the property owner will not need to return to you. When entering into a rent to own agreement, ideally you want to be 100% sure it’s the right property and that you will have the ability to buy it with a conventional loan in a couple of years or when your negotiated lease term is up. If you’re certain, a rent to own contract can be a great way to purchase a home in San Antonio.
We only offer the best properties and rent to own situations for the customers we work with in the San Antonio area. Let us help you find the right rent to own situation for you!