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By: adolfo case

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Friday, 25-May-2012 20:35 Email | Share | | Bookmark
Home'S Genes

Many people are living in rental homes as they save up to buy their own home. As life would have it, emergencies arise and most times, people tend to turn to their savings to deal with these emergencies and this simply means that the money they are saving towards buying a home does not grow as fast as they would like it to grow.


You go to the bank and every time you apply for a mortgage, your application is rejected for the simple reason that you do not have enough money for a down payment. This is extremely frustrating for many people and the first thought they have is to give up on their dream of owning a home. But before you throw in the towel, there is a way out for you. Ever heard of rent to own?


When you see a home that you would at some point wish to buy, you can agree with the owner to let you rent the house and after some time, go ahead and buy it. This is a lease to own agreement that is amazing for those locked out of ownership by strict bank regulations. Both parties have a lot to gain from this arrangement. The owner sells a house at a reasonable amount and the buyer achieves the home ownership mile stone.


For these reasons, lease to own contracts are of great benefit to both sellers and buyers of property though it is important for both parties to carefully scrutinize the lease agreement and ensure that it is mutually beneficial. Buyers should especially be carefully because their knowledge on the property market may be limited. Thus, using a knowledgeable real estate agent is always a good idea when considering such transactions as a buyer or a seller.


If do not qualify for a mortgage now, you can begin to prepare your finances in order to qualify in the future. Meanwhile, you can put down a deposit for a home and continue paying monthly rentals and when you do qualify for a mortgage, you can go ahead and buy the home. You and the seller must agree on the deposit amount and the monthly rentals. The lease therefore has that clause that allows you to buy the property after some time.


This time period also gives them the chance to accumulate savings which they can use to buy the said property. Should the potential home buyer chose not to exercise the purchase option for the property, they forfeit the fees and rent paid that far. Some lease options may provide a clause that allows the potential buyer to sell their option to buy, thus recovering some of the money paid in terms of rental and down payment.


These home purchase options is being used more and more especially in the harsh economic times because it is valuable to all the parties involved.


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