just starting my life on my own want to know how to get a condo or towm-house to rent to own have great credit in new-jersey

Asked by foxyhartman, Pleasantville, NJ Mon Feb 4, 2013

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Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Mon Feb 4, 2013
Good morning foxyhartman,

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
0 votes
Jacques Ambr…, Agent, Forest Hills, NY
Mon Feb 4, 2013
First question is are you employed? You should contact a local realtor and let them know what you are interested in
0 votes
I am a widower i am getting my money from sss it is good money every month we lost every thing in a scam in Florida lost lots of money today i am trying to get some-thing of my own but do not know how to go about it you can call me at 609-948-5162 Jennifer Hartman need to get my feet stable trying very hard Thanking you Jen
Flag Mon Feb 4, 2013
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