Home Buying in 11236>Question Details

Nicole White, Renter in Brooklyn, NY

What about rent to own? How does that work?

Asked by Nicole White, Brooklyn, NY Sun Mar 23, 2014

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Rent to own is a horrible, horrible idea for the buyer. I strongly suggest that you continue to rent until you can qualify for a traditional mortgage.

When you want to buy a home the best place to start is to hire an EXCLUSIVE Buyer Agent, not just a Buyer's Agent. EBAs only work with homebuyers and there is never a conflict of interest that will jeopardize your negotiating position. I can refer you to an EBA in your area, if you like.

I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home and get a mortgage without getting ripped off. Follow the link below.

Best of luck!

Alysse Musgrave
214-734-3863
Alysse@HelpUBuyAmerica.com
http://www.HelpUBuyAmerica.com
0 votes Thank Flag Link Mon Mar 24, 2014
Rent to buy may also be called Lease to Buy; Renters pay a certain amount each month to live in the house, and at the end of an agreed upon period they have the option to buy the house. Each month of rent they pay is income for the seller, while a portion of it goes toward a down payment to eventually buy the home. Be aware that many contracts in rent-to-buy situations disallow late rental payments from counting toward an eventual sale. People with on time payment issues might lose equity when making late payments. Before you enter into this sort of arrangement talk long and hard with your real estate attorney, consider all the liabilities, and have a complete understanding of what's involved. Rent to buy can be helpful, but shouldn't be entered into by anyone who isn't serious about eventually buying the home. Seek legal advice from a licensed NY Attorney because this could end up costing you more money in fees, and above-market rent payments, and a complete loss of all up front fees.
0 votes Thank Flag Link Mon Mar 24, 2014
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