Do you want to become a homeowner, but you have a mistake in your past or a blemish on your credit report holding you back from buying the home you dream of? We can help you buy your dream home using a rent to own agreement. Don’t wait, become a homeowner today!
Many people who are saving up their funds, hoping to become a homeowner fail to ever look at the benefits of using a rent to own agreement to buy a home. Most people don’t realize how helpful and beneficial the process can be. Don’t rule out buying a house right now just because the traditional loan options aren’t working for you. Using a rent to own agreement can help you find and secure your property today, instead of years down the road.
Who It Can Help
Buying a house in Chicago via a rent to own agreement can offer many benefits to buyers. It can also help people who want to buy but need some more time to prepare. Sure they could wait, but many times, people are ready to put down roots. They want to find a home for their families, without having to pick up and move again any time soon. Using a rent to own contract can help people in a number of situations, finally, buy the home they have been dreaming of. The beauty of a rent to own agreement is that it provides you with the time you need to get yourself together, without having to live in yet another rental property.
When you have bad credit, you aren’t going to have much luck qualifying for a loan. If you do qualify, you’re likely to be stuck with a much higher interest rate than people with better credit. With a rent to own agreement, you’ll be able to secure the property, pay a monthly fee, and officially close on the property at the end of your lease term. This will give you the time you need to repair your credit and prepare for the actual purchase. Work diligently on your credit during this time and take advantage of free credit reporting tools.
Lack Of Savings
Coming up with a down payment isn’t always easy. By the time you pay your rent, utilities, family expenses, and food bills, there isn’t always a lot left over to tuck away. That doesn’t mean you should have to wait for years to get into a home you love. By using a rent to own contract for a Chicago property, you’ll be able to settle into the house today, while having an extended period of time to save up for a down payment to a traditional lender and eventually buying the house outright.
A down payment isn’t the only thing you will need money for when buying a house in Chicago. You should factor in moving costs, storage, repairs, painting, touch-ups, landscaping, new furniture, and all the other miscellaneous costs that arise when buying a new home. Before you officially become a homeowner, you’ll want to have a little money in the bank to cover incidentals.
What To Expect
When you buy your dream home using a rent to own agreement, there are a few things you will want to prepare for.
First, you should expect to pay a higher than average rent. This protects the seller’s interests and will make you less likely to default on the agreement. In many agreements, a portion of the increased rent will go toward the buyers down payment on the home.
The lease term is usually somewhere around 2-3 years, however, these numbers aren’ set in stone. The buyer and seller can make an agreement, with any duration they see fit.
Most agreements will require you to pay an option fee up front. The again protects the seller’s interests, secures the property, and gives you the option to buy the property at the end of the lease term.
Why Sellers Love It Too
Sellers will also find a number of benefits when selling to a buyer in this manner.
- They will be more likely to get their asking price
- They will be able to get some cash up front to move on to a new property
- They will create a monthly income for themselves
- They will be able to find a buyer for their house more quickly
- They will be able to pass off some of the ownership expenses to their prospective buyers
- They will be able to keep all monies paid toward the house should the buyer default on the agreement
If you are ready to become a homeowner in Chicago but aren’t ready for a traditional mortgage, find out what a rent to own agreement can offer you!