Avoid These Two Mistakes When You Rent to Own!
Deciding to get a rent to own home is a big decision and can be a great step towards home ownership. Because you probably have never done it before, you may not be aware of some common pitfalls that you will want to avoid. Let’s take a look at a few.
Failing to Require the Homeowner Provide Proof the Mortgage is Current!
When most people start to look at rent to own homes listings they are mostly focused on finding the home of their dreams. This is certainly understandable. However, you also need to be smart! One of the most important things you need to do is get verification that the mortgage is current. While you may be hesitant to ask for this, unless you get this verification you run the risk of paying an option fee and your first month’s rent and later finding out that the home is head to foreclosure. This can be both financially and emotionally devastating. The best think you can do to protect yourself is get verification that the mortgage is current up front, and requiring verification on a monthly basis. This can be as simple as being provided online access to the mortgage account.
Not Paying on Time!
If you have been renting for most of your life, you may be very relaxed about when you send your monthly payment in. Now is the time to change your habits! While you are in your rental period, you will be working on credit repair. Developing good habits now will go a long way towards improving your credit.
Beyond that, most rent to own contracts have a very narrow time period for which you are entitled to receive your rent credit. Some even state that if your payment is as much as a day late, you forfeit your rent credit for that month.
Tagged with: houses for rent to own • rent to own home • rent to own homes • rent to own house • rent to own houses • Rent-to-own
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