Rent to Own

A solid article on the upsides and downsides, and what to look for if you’re the tenant-buyer thinking about getting into a home on a rent to own basis.

Some highlights:

Before we look at the key terms, there is one very important consideration to keep in mind. You should treat a lease purchase property as if you are buying the home. It amazes me how some people will put down a lease option fee and enter into a 3 year contract having spent 10 minutes in the home

It may seem odd to talk about financing since you won’t need a mortgage unless and until you decide to buy. But my recommendation is that you talk to a mortgage broker BEFORE entering into a lease option. A good mortgage broker will give you an honest assessment of your chances of being approved for a loan during the term of the option