Facts About Rent to Own

According to the nolensville TN Realtor, people who are desperate to have their own home, but cannot afford to to buy a new home, there’s one option that they can do to afford it. It is the option of rent-to-own. . The rent to own option is such an alternative that is gaining popularity with buyers and sellers alike. This article discusses the facts about rent to own that will serve as a guide for everyone who wishes to do it.

Before anything else, I’d like to start by discussing what rent-to-own is. Rent-to-own is an arrangement that is made between the seller of a real estate property and potential buyer who for one reason or another is unwilling or unable to undergo and commit themselves to a traditional sales transaction. The arrangement will allow the potential buyer to live in the real estate property as a renter for a specified amount of time before a final sales contract must be consummated.

In Real Estate Search in cool springs Tennessee, the reasons why there are people who avail of this kind of real estate transaction include the following:

1. They don’t have the required cash down payment for a traditional home loan. Rent-to-own arrangement allows them to move into a new home as renters with a lower down payment.

2. They have loan issues that’s why they are unable to secure a loan.

3. They can improve their credit score if they rent which will then able them to avail for a higher home loan.

4. Sellers of rent-to-own properties benefit in this type of transaction when they sell their properties when the market is down.

5. Sellers get passive income through the monthly payment of the renters and they can collect more money over time with a rent to own arrangement than with a direct sale.

How this type of real estate transaction works

As I said earlier, Rent-to-own is an arrangement that is made between the seller of a real estate property and potential buyer who for one reason or another is unwilling or unable to undergo and commit themselves to a traditional sales transaction. The selling price of the home is negotiated between the two parties, as is the date by which the buyer/renter must finalize the sale with the seller/landlord. It allows buyers to live in the new home, pay monthly rent for a given time frame, give the asked down payment and they can have the home as their own when all the payments had been settled and fully paid.

More and more people are finding this type of home owning arrangement a great way to have their own ownership than the traditional home owning process. It lessens the financial burden that is associated with the traditional home owning.