You may have seen advertisements that read, “Rent own homes for $500 per month. ” if you have spent time driving around or browsing Craigslist or other sites. Absolutely no credit checks!”
Many people living in South Jersey are taking advantage of the rent-to-own homes housing market, despite the fact that it may appear to be an opportunity that is too good to be true.
But…
Are South Jersey Rent-to-Own Homes a Scam?
In every industry, there is bound to be at least one shady operator or two who brings the rest of the industry’s reputation into disrepute. But renting to own or lease option homes aren’t a con, and they’re actually a really great way for people to get started on the path to home ownership, especially if their current financial situation prevents them from qualifying for a home loan. Rent-to-own, which is also referred to as a lease option by many people, is a great and legitimate way to work your way into home ownership, and you can find hundreds of great articles online from reputable resources that back up this claim. You can find these articles by searching the internet.
Really the rent to own process is a relatively simple concept:
- The buyer and seller come to an agreement on the cost of the home, the monthly rental payment, and how long the buyer will have to purchase the home.
- The buyer moves into the home and begins paying rent. While all of this is going on, the buyer is working to rebuild his or her credit, or possibly secure financing to purchase the home using traditional means… and the buyer can feel that same sense of pride that home owners feel because they are actively working toward that goal of home ownership.
- At the end of the term, the buyer has the option to buy the home at the price agreed upon in the initial agreement.
Things To Consider With Your South Jersey Rent To Own Home / Lease Option
While rent-to-own homes in South Jersey are a valid business venture, there are many things that buyers must consider.
Purchasing a home is one of the most complex financial decisions that Americans make every year, and renting to own is no different. There are several potential pitfalls:
- In the case of renting, as opposed to traditional ownership, if a renter misses a payment, the entire contract has the potential to be null and void. Therefore, it is imperative that you read the fine print and inquire of the property owner regarding the default clause. Any reputable real estate company, such as K&I Home Services, can provide you with this information and answer any questions you may have about real estate.
- If you make the decision not to buy the house or if you are unable to obtain financing, any “credit” that you may have earned toward the purchase of the house will probably be lost.
- In most cases, the “option fee” paid up front as part of a rent-to-own agreement is a fee that is non-refundable. Be absolutely certain that this house is the one for you before you put your name down on the dotted line.
- The renter is responsible for the majority of repairs in a rent-to-own arrangement, in contrast to the case with traditional rental agreements.
Some Advantages of Renting To Own A Local South Jersey New Jersey Home
While renting to own is not without risk (and no financial decision is risk-free), there are a ton of advantages:
- Before committing to a 30-year mortgage, purchasers have the option to “spy around” the neighborhood.
- It is easy for families to relocate here and sign their children up for classes at the neighborhood schools.
- Customers who have experienced credit issues will be given additional time to improve their financial standing.
- Because the property is rented, the buyer can rest assured that the condition of the home will be maintained.
- The buyer will make monthly payments to the seller, which can cover their monthly mortgage costs.
- When buyers with less-than-ideal credit are taken into consideration, the seller has access to a larger pool of prospective customers.
When everything is taken into consideration, renting to owning a home in [market city] is not only not at all a con, but it’s also a perfectly legitimate choice for both buyers and sellers. If you are interested in receiving additional information regarding renting to own a house in South Jersey, the process, as well as our current list of local [market city] rent to own houses / lease options, please contact us, click the big link below.
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