Do you rent a house in Chicago? If you are looking for a new place to live, renting to own a home may be a better option for you. Learn more about how the process is benefitting people all over the country and how it is different from simply renting a home in our latest post!
Do you dream of being a homeowner in Chicago? There are several ways you can make this dream a reality. Some people stick with renting because they are worried about the responsibility of owning a home. However, when you factor in what could be gained by owning a home of your own, you’ll likely realize how beneficial buying a house in Chicago can be. Even if you feel as if you will not qualify to buy traditionally, there are options for you! Keep reading to learn more about your housing options: rent to own, renting without any intention to buy, and what it takes to buy a home outright.
Renting To Own
The process of renting to own a home in Chicago is fairly simple. When you rent to own a home in Chicago, you will first have to make a deposit to the owner to secure the deal. You will then make monthly payments, similar to a monthly rent until the agreement expires and the house is purchased outright. The contract will typically only last for a couple of years, so you will need to be able to get your ducks in a row before the agreement ends. However, when you know that the purchase of your dream home is on the line, you are highly motivated to repair your credit and add to your savings account.
Another great perk about renting to own is that you get to try before you buy. With a lease-option agreement, you can opt not to go through with the purchase if you discover there are a number of things wrong with the home. In some cases, you may also be able to apply a portion of the monthly rent you are paying toward the principal owed on the home. This is the reason why monthly payments are sometimes a bit higher than the going rental rates in the area.
Renting A House
When you rent a house in Chicago, you will typically sign a one year lease. Of course, these terms can vary. Some leases last two years, some 6 months, and some are month to month. Each month you must pay the rent on time in order to avoid eviction. While renting does decrease your responsibility, you should remember that your rent is paying somebody else’s mortgage. You could be spending the very same amount each month to buy a house, yet you will also be building equity and investing your money into a tangible asset that can benefit you for years to come. Renting works for people looking for somewhere to live on a temporary basis, but if you don’t feel like moving again for the next few years, buying a house is the way to go.
Buying your house outright is typically the way most people acquire a home of their own. Apply for loans, work with an agent, go to open houses, and hope that there aren’t hidden defects you accidentally overlook. While the process works for many, saving up for a down payment and getting your credit high enough to qualify for a traditional loan can prove to be a challenge. When you buy a house in Chicago the traditional way, you’ll need to have a good amount of cash upfront as well as the ability to qualify for a loan. That is unless you are paying for the home in cash. Buying a house outright can sometimes cause buyers remorse. The neighborhood may not be what you thought, commutes may take too long, or the house may not be what you had hoped. With a rent to own, lease-option agreement, you will be able to experience actually living in the home before you decide to buy it.
Creating The Right Agreements
No matter how you decide to sell your house in Chicago, it is important you have the correct agreements in place.
- If you are buying a house via rent to own in Chicago, be sure all of the details have been worked out. Who pays for the repairs and maintenance? Taxes? Insurance? You’ll need to know exactly what you are getting into before you commit to purchasing a house with a rent to own agreement.
- When renting a house in Chicago, carefully read over your lease to make sure there aren’t any hidden charges or responsibilities.
- When buying outright, it is best to work with a real estate attorney, qualified agent, or other real estate professional you can trust.
Renting to own a house in Chicago is one of the best ways to become a homeowner. Reach out to us to learn more about it and to buy a home of your own! (312) 300-2043