All you Need to Know About Rent to Own Homes
Buying a ready built home or constructing your own is not always easy as it involves huge sums of money to get s good one. Some of the most popular way of getting finances to purchase a home is getting a loan from financial lending institutions that give mortgage which enable you to pay for the house and you then begin to pay back the list an in calculated amounts for a specified period amount of time by end of which you are supposed to have completed paying it back. It’s possible to be in a position in which you don’t qualify for the mortgage at that specific time maybe because of credit history or other factors that are part of the requirements of the loan and in such a case, you will need another method of enabling you to get the home you desire. There is another method of purchasing a home whereby you rent a the home for a specified period of time after which you can purchase the home and it’s referred to as rent to own home. Just like in any other contract that you sign, it’s important to have every point in it clarified so that you can be sure of what you are getting yourself into especially the point where your lease period ends, the contract could state that you are obligated to purchase the property while another might state that you can purchase the home or opt out without consequences.
In some cases you might be so ready to own a home hence you go ahead and sign a rent to own home contract that states that you will be required legally to buy the property after the end of the purchase period but for various reasons you don’t want to buy the property maybe because your financial goals did work out but since the contract you signed stated that you are obliged to purchase the property you will face legal charges for breaching the contract. For different reasons youany legal charges for failure to purchase it might not want to buy the home after the contract for renting is over and if your contract stated that you have the option to either buy or opt out then you will not face any charges for failure to buy the property. When you decide to take on the rent to own home deal you will pay a certain percentage of the house sale as the option fee and some premium rent and you can then get to occupy the house immediately as stipulated by the contract until the agreed period of time for lease is over whereby you can purchase the home either before the contract ends or after This kind of contract is very helpful especially when you don’t have the funding immediately as you are able to work on getting the funding as you occupy the house.