Looking for rent-to-own real estate in Surprise?
The good news is – with rent-to-own, you can still live in a great, permanent home even if you have bad credit or no credit.
Rent to own real estate in Surprise is quickly becoming a popular way to get into the house of your dreams even if your credit isn’t perfect right now. We’ll show you how it works in this blog post…
Renting and owning are the two most common ways to pay for a roof over your head. With renting, you pay (usually monthly) and it’s short term… but, you don’t actually OWN anything. With owning, you usually have to borrow a chunk of money in the form of a mortgage, you pay back the mortgage loan and it’s long term… you actually OWN your house. There are advantages and disadvantages to both, too.
Ahhh, but there is a third option, and one that is not very well understood by most real estate agents. This third option is great for people with 1) bad credit or no credit; 2) just starting out a professional career so you have not had time to build up credit or salary history (both of which help you qualify for the best mortgage rates); 3) had a life change like divorce or death, leaving them with impaired credit and/or work history. If you’re renting right now and want to own your own home, you might feel that you are prohibited because of your credit but rent to own real estate in Surprise AZ is the solution.
By renting to own, 1) you move into a house, 2) pay rent for a period of time, and then 3) purchase that house at the end of the rental period. While that may seem like a simple formula — it really is!
Benefits of To Rent To Own in Surprise Even With Bad or No Credit
Renting to own may appeal to prospective homeowners who do not qualify for a mortgage now but expect to be better qualified in the near future. Here are some benefits of renting to own:
In some contracts, renters can lock in a purchase price based on current market rates. So even if the market gets sizzling hot and the home’s value increases over the course of the contract, the renter is entitled to purchase the home at the agreed-upon price. Rent-to-own agreements may be an attractive option in reliable markets where home prices are expected to increase as they have been forecasted for Surprise.
If your credit score is too low to qualify for a mortgage, you can ‘lock in’ a home at current market rates and then work on improving your score over the course of the rent-to-own agreement. If you still do not qualify for a mortgage at the end of a lease-option agreement, you are not obligated to purchase the home.
A rent-to-own agreement allows you to test out the home before ultimately purchasing it. This gives you the opportunity to find out if the home has any long-term issues or concerns that you would not necessarily learn about with a traditional home purchase.
By renting the house first for a period of time, you get into your permanent dwelling in a credit-friendly way. Sometimes (depending on the situation), some of your rental payment may go toward the down payment or some other benefit – this varies from one property owner to the next.
While you rent, you have time to work on your credit: you’ve got a permanent address and you can work toward improving your credit.
As the rental agreement draws near the end, you use your good credit to apply for a mortgage from a bank, and then you own the house.
The details may vary from one property owner to the next but these are the general concepts involved with rent to own real estate in Surprise.
There are really great benefits to you: You get into your permanent “dream home” sooner, even though you may not have the credit or down payment right away. And then you have a permanent address that you can use to help you improve your credit, with enough time to really turn your credit around and get a bank loan.
If you’re renting right now and want to own your home someday, rent to own might be the right choice for you.