If you want to buy a house now, but have something holding you back, a rent to own situation might be the solution for you! Rent to own doesn’t always get the best rap, but when set up correctly, it can provide you with tremendous benefits! In our latest post, we will provide you with 7 reasons why you should rent to own your home in Fort Myers!
Many people think that if they want to buy a house, they will first have to save up a small fortune and make sure their credit looks perfect. While these things are both beneficial for future homeowners, there is a way you can find, secure and lock down the house you want today, even if you aren’t quite ready on paper. Below we offer many reasons why a rent to own agreement can benefit you when purchasing your house in Fort Myers!
#1 – Time To Save Up
When you enter into a rent-to-own agreement, you’ll have the opportunity to save as much as possible over time. With a clear timeline for when the purchase will be finalized, you’ll have ample time to prepare financially. Additionally, since you’ll already be residing in the house, it will feel like home, and you won’t feel as though you’re merely spending money on rent each month without any long-term benefit.
#2 – A Chance To “Try Before You Buy”
Imagine being able to live in the house for two years before committing to buy it? When you rent to own, that opportunity can present itself! What if something goes wrong with the house? You’ll want to make sure there isn’t a penalty for changing your mind about purchasing. If needed, include disclosures to protect yourself in case of discovered damage or other circumstances.
#3 – You’ll Have Time To Fix Your Credit
Rebuilding your credit may seem daunting, but with a well-defined plan and strategic approach, significant progress can be made within a couple of years. By implementing effective strategies and practicing disciplined budgeting, you can elevate your credit score, making you eligible for various loans. You may be pleasantly surprised at how swiftly your credit score can improve with even minor adjustments.
#4 – Lock In Today’s Price
When you sign an agreement with a seller the purchase price will usually be agreed to upfront. This means that no matter what happens with the market, the previously agreed upon price is what goes. While home values can always drop, it’s more than likely the house will be worth more in a couple of years, ultimately letting you purchase below market value.
#5 – Build Equity While You Rent
In a rent-to-own arrangement, although your rent may be higher compared to a standard rental agreement, a portion of it is usually designated to contribute towards the down payment when you eventually purchase the home outright. However, it’s crucial to bear in mind that in the event of default on the agreement, the owner may be entitled to retain all the rent paid, along with the deposit and option fees. Therefore, entering into a rent-to-own agreement should only be considered if you are absolutely certain you can fulfill your obligations without fail.
#6 – Confidence Boost
Owning a home can do wonders for your self-confidence. Maybe it has been a goal of yours for a while but has always felt a bit out of reach. With a rent to own agreement, you’ll be able to reach your goals faster than you think! You’ll be able to take pride knowing you are well on your way to owning a home of your own.