Home Buying in Columbus>Question Details

hkmanira, Home Buyer in Columbus, IN

Can anyone help me please? I'm looking into rent to own, or possiblely buy if you can work with my situations. Please contact me at hkmanira@ mtu.edu.

Asked by hkmanira, Columbus, IN Thu May 16, 2013

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Good morning hkmanira,

Rent To Own is a better deal for the Seller than it would ever be for a potential Buyer.

The basic concept is finding a way to "force" savings towards a down payment by including a portion of the monthly rental that goes towards that savings. You pay your rent every month and your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account. Your Landlord holds that money until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.

The terms of the purchase price, including the down payment amount, and the amount to be set aside from the rental for down payment, are all set down at the time of lease signing.

It's all about helping the renter/tenant save up enough money for a down payment to buy a home (in this case, the one you're renting). But this is a better deal for the Seller because he gets to lock in a purchase price and a buyer today for a future sale.

Saving money for a down payment? Well, heck, you can do that on your own.

If you are dedicated to the idea of buying your own home, you can create your own savings plan to save up enough money for a down payment. And when you have saved up enough for a down payment, if that takes a year or two or more, YOU get to decide on the price you're willing to pay for the house at that time based on current market conditions. You won't be locked in to a price that may be a lot higher than what the house is worth in the future.

With Rent To Own you'll be locked in both to the house and to the price, even if it takes you 3 years to save enough through the forced savings of the rent payments. What happens if three years from now your life situation has changed? Maybe you need a bigger/smaller home. Maybe your employment has relocated. Maybe your credit or income is insufficient to qualify for a mortgage loan.

Find a way to save up on your own; not with Rent To Own.

Sit down with a local Mortgage Banker and get yourself prequalified, too. You may find you're better qualified than you think you are, and, if you're not, at least you'll know how much loan your income and credit qualify you for, and how much you have to save towards down payment and closing costs.

Trevor Curran
NMLS #40140

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0 votes Thank Flag Link Fri May 17, 2013
Hello,
I work for Century 21 Breeden Realtors, a number #1 real estate company in Columbus IN. I would be glad to help you out with your questions and house search.Please email me on bdeshpande@c21br.com or call me on 8123787951 so we can talk directly! You can also find me on Facebook. my page is BhavanaDeshpande-C21 Breeden.
Looking forward to hearing from you.
Bhavana
0 votes Thank Flag Link Thu May 16, 2013
Good evening, Weare aPrudential Indiana Realty team & would happy to help. If you would like to either set up a meeting or email us directly with more details of your situation....My email is leigh@burchyett.com. Look forward to hearing from you.
Leigh
0 votes Thank Flag Link Thu May 16, 2013
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