looking for a rent to own. Fixer upper is fine. if its paint and cleaning.. Credit not great. Can anyone help. Charlotte would be great

Asked by Celisahort, Gastonia, NC Sat Jul 14, 2012

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Debra (Debbi…, Agent, Livingston, NJ
Sat Jul 14, 2012
Make sure you really understand what is involved in a "rent with an option to buy" agreement.

I think many consumers mistakenly think they simply pay rent, and at the end of the term all their rent is applied to the purchase price, in the event they buy the house.
They think if it doesn't work out, they just walk away.

This isn't usually the case.

Usually the price is determined right at the onset, so you have to be comfortable with an agreed-to price NOW without knowing what the market will be like at the end of the term................then, there is also "option" money that is NON-REFUNDABLE paid to the seller --------this can either be paid as an upfront lump sum, or, monthly, as an amount OVER and ABOVE the normal market rent for the property. That additional amount would be credited towards the purchase price......or forfeited if the sale doesn't close.

Be very careful!
If you don't qualify NOW for a mortgage due to bad credit..........make darn sure you will be in a position to qualify at the end of the lease term......otherwise, your upfront, option money will be lost.

Good luck!
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