The Advantages of Renting to Own a House or Condominium
Renting to buy is a way to rent a house or condominium in order to purchase it at a later date. It had fallen in popularity years ago as the real estate market bubble formed and everyone wanted to buy a house. However, since the real estate market has recovered from the burst bubble, and prices are stable, there are issues that are of concern to renters. Things such as making a commitment to a mortgage when you are not sure you will like the home or the neighborhood, or perhaps the renter isn’t sure how long a job opportunity will last in the city. There are many examples and a great variety of perspectives. The following are a few advantages of choosing rent to own homes San Antonio over simply paying rent each month.
You want to buy a home, but your credit score is not good enough
You plan on living in the city for many years to come, so you want to buy. The problem is that your credit rating isn’t as good as you would like it to be. This means you will pay a higher interest rate on your mortgage. With some time, you will be able to increase your credit score, but during that time you will be paying rent that you will never see again. However, with a rent-to-own program, a part of the rent you pay each month will go towards the purchase of the home that you are currently living in. When the time comes to exercise the option to buy, you will be in a position to get a lower cost mortgage, and already have paid some of the price of the home.
You don’t have enough of a down payment
You are ready to buy a home, but the money you have saved for a down payment is not enough, but a rent-to-own arrangement can give you the opportunity of saving for a down payment while you are renting, simply by paying your rent each month. Of course, you can still save money in addition to the portion of your rent the is going towards the purchase of the home, but even if you aren’t saving any money, you are still building up a down payment for the time you are ready to buy the home you are renting.
Keep in mind that there are a variety of houses and condominiums available with the rent-to-own option available. Although many of them are in the low to medium price range, there are many high-end properties that have this option. San Antonio Luxury Realty is an example of a company that offers medium to higher end properties. If you want to buy in the San Antonio market but for any number of reasons are not ready to buy immediately, you should give consideration to a rent-to-own lease.