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Rent vs Buy in Northeast Philadelphia : Real Estate Advice

  • All101
  • Local Info10
  • Home Buying28
  • Home Selling2
  • Market Conditions5

Activity 3
Mon Apr 23, 2012
Anna M Brocco answered:
Since rent to own properties may not be listed as such, work with an agent of your own. Keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore inform yourself well beforehand and do consult with an attorney who specializes in real estate. Rather, if you haven't done so yet, why not visit with any licensed loan officer see if you can purchase outright... ... more
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Sat May 19, 2012
Roswell Moore, answered:
Hi Jeanell,

Don't sell yourself short! Have you gone to mortgage professional to discuss your ability to qualify to buy this home? Look for a local licensed mortgage planner with a CMPS designation. Just because you changed jobs doesn't necessarily mean you won't qualify for a mortgage.

All the best,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund in-house, FHA, 203k, VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time. NMLS ID 263779 | AZ BK 0903725
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Tue Feb 1, 2011
Tim Moore answered:
It works best for the owners, keep that in mind.

You find a house, agree to purchase the house at a price a year or two from now. You put down a security deposit that you will loose if you don't buy when the contract says and you pay a monthly amount as rent each month. On top of the rent you will add an option fee of $100-$200 or whatever you agree on and the owner keeps that option fee each month to add to the deposit as your down payment when you purchase in a year or two.

The problems occur when you can not buy in a year or two for whatever reason. The owner then can keep your option money and deposit and out you go. Its better for the seller than you. What makes it worse is that prices have been going down and in a year the values could be lower, a bank might not even allow you to borrow then if the purchase price is too high which will force you to put down even more money or walk away.
I would urge you to avoid rent to own and just save and get in a position to buy when you can.
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