Are you dreaming to own a home but just don’t know how you can manage it? Reasons such as bad credit, little money for a down payment or no credit history at all are the most common hindrances why one does not pursue buying a home. But in today’s market, it is a relief that home ownership is just within your grasp by using the lease option program or more popularly known as “Rent-to-Own”.
What is lease option or rent-to-own?
A lease option or rent-to-own is when you enter an agreement with a landlord or home owner that states in the future (normally within or after 2-3 years), you will be given an option to buy that home. You need to agree on a price when you start the lease, and should you wish to purchase the house within or after the lease period, then you can get a mortgage and end renting. If you opt not to purchase the house, you can move out or continue to rent. The decision is all up to the renter whether to buy the house or not. There is no obligation at all that holds the renter to buy the house in the future. However, he may not get a refund for his initial down payment (usually 1-5% of the total cost of the house) that he made at the start of the lease period. Since the rent-to-own program is specifically designed to help potential home buyers who are financially challenged but wanting to buy their own house, it is important that renters take this program seriously from the start. But then again, the renter is not obligated at all to buy the house by the end of their lease contract. The program is very flexible and the decision to buy the house depends solely on the renter or buyer.
Why is rent-to-own program popular? 
Rent-to-own program will get you into your dream house fast! It is no wonder the easiest way to home ownership. And this makes the program very popular these days. You simply sign a lease similar to what you do when renting any other apartment. With the rent-to-own option, you also sign an agreement saying that you have the right to buy the home and for what price. The same agreement will also indicate the terms such as how long you have to decide on buying as well as the expenses for both you and the seller. Here are some things to note when you enter the rent-to-own program:
- The program allows you to move in immediately. Simply sign the lease agreement, move in and start working on your mortgage application.
- Repair or build your credit status while you rent your home. To get a better mortgage rate, start to pay off some bills or establish your credit status.
- You can put equity into the house even before you buy it! Since you know you can own the house in the future, you may start to beautify it during your rental period. Paint some fresh paint or add landscaping, the choice is yours to make! After all, the house will belong to you soon!
- Save some money while you rent. It probably won’t hurt if you set aside some money for the down payment needed when you later decide to buy the house and apply for mortgage. Keep in mind that the larger the down payment you have, the less the mortgage amount will be. And this will save you even more money in the long term.
- Do some research to investigate the market while you rent. If you are in a seller’s market, you can check if the prices go up or down while you are renting. If the price went down, you can opt to not buy the house and just look for another house that may be less. On the other hand, if the prices went up, relax and forget your worries because you are locked in at an already determined price.
- Know your options. If there are options available for you while renting like a job transfer, know that you are not obliged to buy the house. In such case, you can end your lease, move to another city or state, and just begin another lease option program that will be beneficial to you.
The rent-to-own program is becoming more and more popular every year. In fact, more people are entering the program because they wouldn’t be able to get into a house as quickly otherwise. Others who use the lease option didn’t even know that they could own a home so fast. A company such as 1888ownlater.com specializes in the rent-to-own program. It is a national real estate marketing company that provides a customized system to help buyers, sellers as well as real estate investors, agents or property management companies to close rent-to-own transactions in fast and easy way. If you are a buyer or a seller, sign up with us for free and we’ll assure you that you can find the best solution to home selling or ownership through our unique system.