Lease purchasing a home can offer several key benefits to buyers over simply renting. In addition to affording them the opportunity to qualify for a mortgage, they are future homeowner is able to begin building equity immediately as well as taking advantage in any positive upswings in the market.
3 Reasons Buyers Rent to Own
For many people, success is defined as a promising career, a nice house, a couple of children, and close friends. So, buying a home is a big deal. Many consider it to be the realization of a lifelong dream!
But, if the bank does not share in that vision, buyers are choosing to sign lease purchase or rent to own contracts. Following are three reasons buyers use lease purchases, rather than simply renting.
With a lease purchase, potential buyers have:
1. Time to secure a loan
2. The ability to build equity in their home
3. Hope for a change in the market
In essence, a lease purchase is a means of keeping the dream alive a little longer, so it can become a reality.
Time to Secure a Loan
The main reason people choose to sign a lease option contract is the ability to take possession of their dream home, while trying to get a loan from a bank or other lending institution. In most cases, the potential buyer does not qualifyright now, but they might in a year or two. So, to keep the house from being sold to someone else, they are willing to rent to own for a time.
Equity in the Home
A properly structured lease option will provide the potential buyer with some sort of rent credit. A rent credit is the portion of the monthly payment that will be applied to the purchase price at the time they are able to qualify for a mortgage. Often, depending on the lender and the market conditions, the buyer will have to come up with a very limited amount of additional cash when they purchase the home.
Hope for a Market Change
In addition to allowing someone to enjoy their dream home today, a lease option allows the future homeowner to take advantage of any positive market changes. Because the purchase price is locked in today, there is the potential for the home to have appreciated at the time of purchase. Then, the buyer can either purchase the house and turn around to sell it for a tidy profit or continue to live in the home with considerable equity. Either way, they come out ahead!
In short, there are several reasons that it can be advantageous for someone to choose a lease option over renting. They are able to secure their dream home, while building equity and investing in their future today.
Mastering the Art of Cooking Quinoa
Quinoa, a superfood renowned for its high protein content and health benefits, is a must-try for anyone looking to enhance their diet. This versatile grain is not only packed with vegetarian protein and slow-burning carbohydrates but also boasts a delightful taste that can complement a variety of dishes. In this guide, we'll explore the best practices for cooking quinoa, ensuring that you can enjoy this nutritious grain to its fullest.
Have You Tried Cooking Quinoa?
Quinoa is a superfood that everyone can benefit from adding to their diet. Here is a brief introduction to quinoa.
Navigating the Impact of Credit Card Default
In today's fluctuating economy, an increasing number of individuals find themselves unable to keep up with their financial obligations, particularly credit card debts. Understanding the repercussions of a credit card default is crucial, as the consequences can vary significantly based on how the situation is handled. This article delves into the potential outcomes of failing to meet credit card payments and offers strategies for managing the situation effectively.
