Rent To Own Homes – An Alternative For People With Less Than Perfect Credit
How does rent to own work – For many people, purchasing a property or home will be one of the biggest investments that they ever make. Because of this, a lot of time should be put into doing research so that they can make the most out of their money. In this article, we are going to talk about why rent to own homes can benefit both buyers and sellers.
To purchase a home with traditional financing, there are many hoops buyers need to jump through to qualify for funding from a bank. A credit check is performed, income verification is done, bank statements checked, tax returns provided, pay stubs collected, etc. This is done to ensure the buyer purchasing the home as rent to own will be able to make the monthly payments and is not overreaching of monthly payment they are committing themselves to. But what if the buyer fails to qualify? What can they do but wait while they work to make improvements in the deficient areas?
One option buyers with less than perfect credit have to try purchase a home through a process referred to as rent to owning a home. They may still have all the credit checks performed, income verified, bank statements checked, tax returns provided, pay stubs collected, etc. But they could get set up with a credit repair specialist, and with that responsible step prove to a motivated seller they are on the right path to qualifying to get a home mortgage. When you rent to have home, negotiation goes on between the buyer and the seller – and does not need third party approval. Free listings rent to own .