How not to rent to own a house? How many times have Real Estate Agents received phone calls from "for sale" signs posted in front of their listings from renters or future
homeowners....who cannot purchase right now.....but are quick to ask...
"Hello...I was wondering if the seller of this beautiful home would be
willing to rent to own?" A lot of the calls are coming because of the
news media reporting...that homeowners are desperate to sell their
homes and cannot because this is a buyers market. Truth is...there are some sellers who would not mind doing rent to own
if they could get a better price by doing so, particularly if days on
the market is long (which usually translate into the home being
overpriced in the first place).
Most Realtors get these calls all the time....and yes they can sometime be annoying....but here's how not to be annoying!
1.
To Rent to Own....means that the house has to be in your income and
credit limits......meaning if the house is for sale for
$200,000.....you must be able to afford to pay that mortgage.......if
you are just going by the way it look on the outside and like the
neighborhood, but can only afford a $150,000mortgage...move on.
2.
Be Prepared......Contact a Mortgage Broker or bank to find out what
qualifications you currently have to purchase. Many of the calls come
from people who have no idea of their credit qualifications....and the
first question a good agent will ask is "how's your credit?". Could be
you can purchase now and don't know it...or it could be that you
won't be able to purchase for a very long time............and this is a
turn off for any seller that may consider rent to own.
3. Do your homework.....most rent to owns require a non refundable down payment sometimes equal to a real down-payment if you were to purchase.......have the funds ready if you are serious.....
4. If you need to be in credit repair to purchase....then be in credit repair
with a professional.....these documents will show how serious you are
to purchase in the near future and you will be able to get an real
estate agent to listen to you and take your case to a seller.
5. If you find that right rent to purchase home, treat it like a purchase..do your home inspection....hire a Realtor to help you do it right!