People have many options to purchase a home, one of them so-called Rent To Own. It is a solution for clients unable to save down payment during a foreseeable time and or who have credit issues. In any case, before you enter into any type of rent or rent-to-own agreement, you must contact an experienced mortgage broker. There are many landlords; investors unable to sell their property are resorting to this type of arrangement. Reasons can be, I am not saying for sure; overpriced property, the property needs upgrading, fraud, and so on.
So this is a two-way street. Two parties want to make a deal, however, it has to be fair and you must look to get the right advice from your trusted adviser, your mortgage broker, to: check out ownership and vendor really own the property.
What to watch for!
check out the property, what type of liens, caveats are on, and whether they are removable
check out the price it is not grossly overvalued
how to get an appraisal to ensure you are not being taken for a ride
how to make sure to execute the right type of Lease To Own Agreement
how to properly document the down payment
properly document the funds paid to the vendor and it will qualify as additional down payment
the right documents executed the right way to ensure mortgage approval in due time
reasons to use a reputable law firm will pay off, you can bet on it
Many other hidden agendas can be discovered when you try to obtain a mortgage at the time the Lease To Own Agreement becomes due. We just wanted to make sure, you will not lose all you money what you have put toward the purchase price of the property and you have to start all over. FREE Consultation to avoid possible issues will save you money, time and possibly losing a bundle.
Do not enter in an agreement before you are knowledgeable, will cost you.