Purchasing your first home can be a very exciting and nerve racking time! There are so many things that could go wrong: your loan doesn’t go through in time, you can’t come up with the down payment or you are outbid by another prospective home owner.
For many, the rent to own option can eliminate much of the stress and anxiety that first time homebuyers experience. This article will explore some of the upsides and downsides to buying your first home with a rent to own option.
The Buyer’s Upside
If you are deciding to purchase your first home, this is a very exciting time for you. There are many reasons to purchase a home, and 99% of them are because of happy, exciting events: a growing family, a new job, a promotion etc.
With these exciting events can come some uncertainty. What if that new job doesn’t last? What if your growing family doesn’t really fit in with the other neighborhood families? These are all real and valid concerns that the rent to own option can eliminate.
By renting (or leasing) before you buy your house, you are able to move one step closer to taking on the responsibility of home ownership, without getting yourself locked too deeply into something that you can’t back out of.
Not sure if your kids will like the neighborhood? Rent to own for a year or two. Test the neighborhood out, test the house out and know for certain.
Not sure if the new job will last? Instead of putting all your eggs into one basket, why not work towards a down payment and mortgage, while still having the option to resell the Lease Option to another buyer?
The rent to own option is fantastic for first time home buyers because it offers the buyer more freedom and less risk that traditional mortgage financing options.
The Buyer’s Downside
The largest disadvantage to first time home buyers in taking the rent to own option is that they could potentially lose their investment with little protection. Let’s look at a potential worst case scenario example:
If you were to try and purchase your first home using the rent to own option, typically you would be assessed a small, non-refundable, fee (something around $2000).
You would also be asked to pay... To continue reading this article please click here.
To view free listings of rent to own homes near you, visit us at RentUntilYouOwn.com now.
