Most people tend to check for a listed home, a visit is once or twice before figuring out a way of buying it and closing the transactions. It tends to take only a short while for the home in question to change the title as well as hands. In some instances, the buyer uses a mortgage to buy a home. When it comes to rent-to-own agreement, lease to own agreement also known as a lease option, the buyer accepts to sign an agreement which he or she should rent the home in question for a set time before purchasing it which should be within the expiry of the lease. Among the advantages of rent to own agreement, a prospective buyer tends to move to the house in question right away.
One would need to get the time factor right and the amount he or she ought to be paying as well as whether the amounts affects the amount one pays for the house in question. By the end of the period, one does not only have the right to buy the house in question but ought to have made an informed decision on whether to buy or not. One would only let the contract expire by simply failing to buy the house in question. One, as a result, can make an informed decision on whether to buy the house with his or her experience in the house in question. While the price of the house is decided either at the beginning or end of the contract in rent to own home agreement; it is always essential to note that the house price is always valued at the market price.
The contract involves rent which is mostly paid every month for some contracts having some percentage of rent payment applicable to the purchase price. One as a tenant may pay $1000 but have 20% of the amount accredited to the purchase price. A buyer as a result tends to have easy time settling the full amount at the end of the contract.
To any individuals not eligible for a mortgage, or one who is not ready to commit himself to ownership, he or she would need to consider a rent to own home. One would need to focus on taking time to read the contract of rent to own home right before he or she sets his or her foot in the home in question. You would also need to ensure a market research with the intention of obtaining an appraisal as well as a home inspection.