Rent vs Buy in 21228>Question Details

Sherrie, Renter in Baltimore Highlands,...

Do you have property this rent to own?

Asked by Sherrie, Baltimore Highlands, Baltimore, MD Sat Aug 10, 2013

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3
Good morning Sherrie,

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

Key Points of Rent-To-Own:
• Portion of monthly rent payment is set aside by Landlord towards a future down payment
• Landlord/Seller locks you into a price today for a purchase tomorrow
• Forces the Tenant/Homebuyer to save towards down payment
• Tenant/Homebuyer still has to apply for a mortgage in the future to purchase the home
Rent-To-Own "forces" savings towards a down payment. Your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.
At the end of the agreement, usually 2 to 3 years, you must apply for a mortgage loan to complete the purchase of 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.

You can save for a down payment on your own.

If you are dedicated to the idea of buying a home, create a savings plan. When you have enough for a down payment YOU get to decide on the price you're willing to pay for a home based on market conditions.
With Rent To Own you're locked in to the house and to the price. 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.

Get Prequalified by a local Mortgage Banker. You may find you're qualified now for a mortgage loan.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Fri Oct 18, 2013
Here's a link to a blog I wrote on how to find rent-to-own properties: http://bit.ly/findaleaseoption

Hope that helps.
0 votes Thank Flag Link Wed Aug 28, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Hi Sherrie, if you are interested in rent-to-own properties, please go to our website at http://www.BuyBaltimoreProperties.com as they is all we do are lease options/rent-to-own homes.

You may tell us what you are looking for at this link - http://www.BuyBaltimoreProperties.com/dreamhome.

Also, you may email us at info@BuyBaltimoreProperties.com.

Thanks
0 votes Thank Flag Link Mon Aug 12, 2013
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