How Does Rent-To-Own Work?
In a previous blog post, we learned the differences between a rent-to-own property and an owner financed property. But, now that we have a property in Sherwood, Arkansas, available rent-to-own, now is the perfect time to explain how rent-to-own works.
Is Rent-To-Own for You?
Our rent-to-own properties are available to folks who have some problem with their credit that is preventing them from getting a traditional mortgage right now. The ideal buyer for our rent-to-own properties will be able to get their own mortgage in a couple of years. So, we’re asking folks who are interested in buying our rent-to-own houses to meet with our mortgage lender. He can look at your current situation, and tell you what you’ll need to do in the next 24 months to be able to qualify for your own mortgage on the property. If you and he agree that it’s doable, you’re ready to apply for the lease with an option to purchase.
Application Process for Our Rent-to-Own Properties
You submit your information online, and we receive a report of your qualifications to lease our property. We’ll discuss with applicants anything that concerns us in that report, so a problem with your credit won’t rule you out immediately. But, we are looking for folks who are willing and able to now make their monthly payments on a timely basis. We don’t want to have to chase anyone down to get their monthly payment, and we hope we never have to evict anyone.
You can Own a Home!
If you are selected for one of our rent-to-own properties, we’ll have two agreements with you – a 12-month Lease Agreement with an option to extend 12 more months and a Purchase Option Agreement. Before moving in, you’ll need to sign both agreements, pay the first month’s lease payment, and pay the option fee for the Purchase Agreement. (The option fee applies to the final purchase price of the home, so it helps you grow your down payment!)
Once all that is done, you’re on your way to home ownership. You won’t own the home until you get your own mortgage on the property. And, failure to do that by the end of the lease agreement terms to forfeit the option fees paid to us. We’re really looking for folks who are willing and able to fix their credit problems with the help of our mortgage lender. If that’s you, please let Best Real Estate Investments know you’re interested in this process and would like to buy a house. We’re adding properties to our list every week, and we find buyers quickly. You can get pre-qualified and move to the top of that list right now. We look forward to talking to you soon.