Rent to Own VS Buying Your Home- Which Is Right For You? via @homebidzcom

Rent to Own VS Buying Your Home- Which Is Right For You?

Understand the differences between rent to own vs buying traditionally before you take the next step. What are the major differences, when do the transactions differ, and why would you want to choose either option?   

Traditional vs. Non-traditional

When making a home purchase traditionally, you make a down payment, finance the cost of the home, put out funds up-front for closing costs, and start paying toward the interest and principal balance right away. With rent to own contracts, you pay option money (generally much less than a down payment), rent the home you plan to purchase in the future, and invest monthly rent credit to ensure that you can purchase the home when you are ready or at the end of the contract.  

Downpayment and Financing

In the beginning of the home buying process, if you can't come up with a down payment, traditional financing is likely not an option. This is why some people choose rent to own contracts instead. Those who have everything they need to get into a classic mortgage will likely do so, as it is a more concrete option.  

Wait For A Good Rate

In summary, in rent to own vs buying, if you feel like you're ready to buy, but you can't quite come up with the full sum for a down payment, consider renting to own your home. On the contrary, if you have 20% of the purchase price in savings and are certain you can get financed at a good rate, buy the home now.  

Conclusion

Are you a traditional or non-traditional type of homebuyer? The preference of course is personal. Compare these differences to determine which one best suits you. You will be ready to embark on your home buying adventure in no time!

Latest Posts

This is Why You Should Ask Questions When House Hunting via @homebidz

This is Why You Should Ask Questions When House Hunting

During several stages of house hunting, you will probably be speaking with your real estate agent frequently. This is also the time in which you will probably have a wide range of questions for them as well. There are...
How to Have Patience When Home Buying via @homebidz

How to Have Patience When Home Buying

Just like any other big financial decision, you have to learn a little thing called patience. It is one of the key elements you need to have in order to make sure you make all the right decisions the first time around...
This is How to Choose a Home Lender via @homebidz

This is How to Choose a Home Lender

When looking into getting a mortgage, you actually have quite a few types of lenders that you can choose from. Remember that not every type will work for everyone, so you have to do the research for each to know which...
This is How to Use Simple Ideas For Making A Home Offer via @homebidz

This is How to Use Simple Ideas For Making A Home Offer

In the home buying process, coming to a decision about an offer can be tough; however, it is critical to know how to do this the right way. While you need to make your offer stand out from the rest, you also want to...
Should You Build a New Home for the Best Advantages? via @homebidz

Should You Build a New Home for the Best Advantages?

Starting the home buying process does not always have to be the way that every other home buyer does it. You have the choice to do things differently by having your own home built.Decide on Your BudgetYou will have to...
The Right Way to Visit an Open House via @homebidz

Here Are Simple Tips To Help You Save When Buying a Home

As part of any process as large as buying a home, you have to be careful and think through every single step. Two very big parts of the process will involve something you should make number one on your list; your credit...

Categories