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

Loans, Fees, and the Real Cost of Owning Your Home via @homebidz

Loans, Fees, and the Real Cost of Owning Your Home

Need a Home Loan? We know this may come as a shock, but that home that’s for sale for $350,000 will actually end up costing about $575,000 over time. How? Between the interest rates, insurance, property tax, and...
Rent to Own vs. Traditional Mortgages via @homebidz

Rent to Own vs. Traditional Mortgages

Need an FHA Loan? It’s no secret that most people seek out rent-to-own home options over traditional mortgages because of credit issues: either their credit is fair or poor or simply just unestablished. Depending...
Why Does My Credit Matter? via @homebidz

Why Does My Credit Matter?

Click Here to Look at Bad Credit Home Loans Honestly, if you have less than perfect credit, you can still potentially buy under a rent to own option, but you still have to get financing at some point, so you'll need...
Taking the First Step on Your Rent to Own Journey via @homebidz

Taking the First Step on Your Rent to Own Journey

Looking for Rent to Own? When considering a rent to own journey, there certainly are a couple different choices. Each requires the rental property itself, two authorized documents, and then -- sometimes -- an...
Simple Ways to Save for Your Down Payment via @homebidz

Simple Ways to Save for Your Down Payment

Need Family Support? There are a lot of different ways to purchase a home. You can get creative and try owner-financing, or even buying a home at an auction. For the majority of us though, we’re still using banks and...
Should I Rent to Own or Lease? via @homebidz

Should I Rent to Own or Lease?

Check Out These Listings You've found yourself asking, "Should I rent to own?" or "Should I look into a lease option?" Understanding your options, and determining if a rent-to-own or lease option is the most...

Categories