Home Buying in Muncie>Question Details

Jessica Mcfa…, Home Buyer in Muncie, IN

What if I see a property and talked to this website about this property that they are listing rent to own. Eventually the house will cost roughly

Asked by Jessica Mcfadden, Muncie, IN Thu May 27, 2010

60,000. Then I see it on another website from a different company for a fraction of the cost. What do I do?

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4
Jim Simms’ answer
I agree with Chris.

Be very careful, sellers are not subject to the same regulations as lenders. Even if you find one the deal may fall apart years from now. I frequently get calls from buyers that lost a ton because the deal did not work out like they thought it would. You are assuming the seller is in a better position than you are, often a very big mistake. Usually the reason a buyer seeks owner provided financing is because the buyer does not qualify for a traditional loan. Underwriting guidelines protect the buyer more than they do the lender. If you work around not qualifying for a traditional mortgage the risk on your side increases a lot.
1 vote Thank Flag Link Fri Feb 17, 2012
Be careful about rent to own as well as buying on contract. Especially if you don't have someone who can help you with understanding the contract in which you will be signing. Often families will enter into a land contract or rent to own agreement because they are currently unable to purchase the home out right. Are you wanting to buy the home or enter into a rent to own agreement?
1 vote Thank Flag Link Fri Feb 17, 2012
The blog raises a very good point that some may not think of. If you go into a lease w/option to purchase or rent to own agreement ASSUMING that at the end you will be able to buy the home. If you plan to get a mortgage, you need to be aware of the lenders requirements. Most lenders will require some type of rent verification to be done. If you are in a lease w/option to purchase. Not all lenders will accepct your agrement. I spoke to a loan officer recently on this very issue. This particular bank will not accept a lease with and option to purchase. Entering into this type of agreement may hurt you when you go to apply for a loan with certain banks.

Thanks for sharing Jim!
0 votes Thank Flag Link Fri Feb 17, 2012
Jessica talk to a Realtor® and have them represent you. Are you sure which of the advertisements are by the owner? Are any of them by the owner? There are a lot of scams out there so be careful.
0 votes Thank Flag Link Thu May 27, 2010
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