Home Buying in Chicopee>Question Details

susanmadera3…, Other/Just Looking in Chicopee, MA

I'm trying to get into a rent to own home due to bad credit. What should my first step be?

Asked by susanmadera3435, Chicopee, MA Sat Mar 2, 2013

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I would suggest you work on fixing your credit first, Rent to own is typically not such a good deal and benefit the owner more than you.
Web Reference: http://wenrealty.com
3 votes Thank Flag Link Sat Mar 2, 2013
In addition to the risks it carries, the reason I don't like a rent to own is that your choices are going to be VERY limited as there are few sellers who will entertain the idea. When you go to buy a home, you should be able to shop for all homes in your price range and desired areas, not be forced to pick from the small selection there may be to rent to own (if any, there are virtually none listed in my immediate vicinity right now).

I agree to get your credit back on track and put yourself in a buying position where you get to pick from the full selection of homes available.
2 votes Thank Flag Link Sun Mar 3, 2013
I would suggest you work on fixing your credit first, Rent to own is typically not such a good deal and benefit the owner more than you.

Wen Farina is the Best Answer.
1 vote Thank Flag Link Sat Mar 2, 2013
I totally agree with Wen , and also Scott in regard to hiring an attorney to protect your rights.

What your "first step should be", imo, is............ work on increasing that Bad" credit before even thinking of taking on more debt, even if it were possible.

Rent until you can buy a home in the normal manner.

Sit and talk with a loan officer....not sure how you're defining "bad credit", but you need to know how you can go about getting it to an acceptable level so that you will qualify for a loan when the times comes.

There are dangers lurking in a "rent with the option to buy" agreement.....you could lose the deposit money that will be required if you cannnot, or do not (for any reason) exercise your option to buy the home.
You may be asked to pay an amount of rent over and above the normal rent - only that part of the rent would be applied to the purchase price.......or............forfeited if you do not buy the home.
The price of the home is decided on now, not at the end of the 1 or 2 year lease.

Make sure you completely understand what it is you're asking for!

Best wishes....
1 vote Thank Flag Link Sat Mar 2, 2013
Hire yourself the best attorney who is very familiar with these types of contracts. There can be serious risk to these types of deals. You need to make sure you have an attorney to protect your interests and structure the agreement so you don't lose everything easily.

Hope that helps,
1 vote Thank Flag Link Sat Mar 2, 2013
Very difficult to do in today's market. But definitely should focus on speaking to a credit repair specialist. Ask around, many times a lender can or will help you if they think you may eventually come to them when your are ready for a loan.
0 votes Thank Flag Link Tue Apr 2, 2013
I would recommend having an attorney look at the rent-to-own contract and make sure it is not too one-sided (against you)
0 votes Thank Flag Link Tue Apr 2, 2013
Your first step should be... Don't do it!

Square away your credit first then buy a home. If you work diligently you can repair your credit fairly quickly. A rent to own situation is very seller weighted. They get all the benefits you take all the risks.

A seller doing a rent to own, is a seller who is trying to sell their house for more money then its worth or the house is difficult to sell for another reason.

Be patient and take care of your credit first.
0 votes Thank Flag Link Tue Apr 2, 2013
It really depends on what specifically is damaging your credit. If it is "late payments," you will need some time to build up a better credit history with on-time payments. (Recent credit history becomes a lot more important to credit rating agencies than older credit history.) If the issue is high "utilization" (high total amount of debts outstanding), it would be ideal to be able to pay those down below at least 50% of your available credit lines.
0 votes Thank Flag Link Mon Mar 18, 2013
You need to visit someone to get preapproved. If the bad credit is the issue you need to fix it because even if you found a rent to own you would not be able to purchase it after the lease is up and you would be out the deposit depending on the contract.

If you don't know what to do to fix your credit you need to find that out and get a time table as to how ling that will take. I would with debt consolidation companies if you need assistance.
0 votes Thank Flag Link Sun Mar 3, 2013
Find a good realtor and explain your situation. The realtor will be able to direct you on what you need and help you package yourself so a seller might accept your offer. Check out your local realtors in the find the pro tab above
0 votes Thank Flag Link Sun Mar 3, 2013
Just curious if you understand wha "rent with an option to buy" really means, especially for someone with poor credit who doesn't qualify , now, for a loan? Do you know what the consequences can be? Why woulld you suggest they find a realtor to "help "package"themselves" ? That had noting to do with the question, and it is just poor advicel.
Flag Sun Mar 3, 2013
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