If you’ve been saving for a new home down payment, but you aren’t quite ready to ink a deal yet, then the concept of renting to own may have crossed your mind – and for very good reason.
For instance, in most cases, a portion of the rent that you pay in this scenario will go towards the purchase price of the property. As a potential buyer, renting to own can also allow you to lock in a purchase price today for a transaction that may not actually take place for several years – during which time, the value of the home could appreciate. This, in turn, can help you to build equity in the home before you even own it.
In addition, if your credit is not as good as you’d like it to be, renting to own can give you the opportunity to settle into your home now while you work on rebuilding your credit before the actual purchase takes place.
Unfortunately, though, even with the many plusses of rent to own, there can also be some potential drawbacks if you opt to go this route. For instance, if it turns out that you don’t end up purchasing the home, you stand to lose any additional monies that you used for making improvements or updates to the property.
Plus, until you actually close the purchase deal, you don’t have as much control over what happens with the home. This could have particularly negative consequences for you if the current owner of the property stops making the mortgage payment, and the property ultimately goes into foreclosure.
With that in mind, purchasing a home can often be the best route to take. If you’re ready to move forward with buying a home to call your own from Day 1, Contact Us. We’ll help you to find the home that works for your specific needs (both present and future), as well as for your budget.