To keep on track to fulfill the promise of a home purchase, tenant-buyers need to be motivated to maintain or improve their credit. They also need to be sure they have the right agreements in place to protect themselves through the rental and purchase transactions.
Mortgage loans are not always easy to obtain, even for buyers with strong credit history and good credit scores. In order to transition from rent to buy, the tenant-buyers of a rent to own home need to maintain a goal of approving for a mortgage loan in the near future.
There are many informal ways for buyers to pursue better credit management practices.If tenant-buyers have past credit challenges, professional credit repair services may be needed. And overall, for all home buyers, it is vital to check and monitor credit to make sure scores continue to improve over time.
Frequently Asked Questions
Check this list for a sample of commonly asked rent to own home questions and answers .
Sample Lease Option Purchase Agreement
Real estate transactions require specific legal contracts. In a lease option purchase, the terms of each element (the rental agreement, option fee, and sales contract) can be customized to meet the unique needs of both the tenant-buyer and seller. It is recommended that all formal offers, agreements or contracts be reviewed by professionals, such as lawyers or qualified real estate agents, prior to being signed. As a courtesy, a sample lease option purchase contract example is available for tenant-buyers to inspect for illustrative purposes.