How to Get a Rent to Own Property in Washington with Bad Credit
Everybody desires to eventually live in their own home. This might prove difficult for some people due to factors such as lack of financing and poor credit. One of the ideal ways to get a house under these circumstances is getting a rent to own property agreement. A rent to own property in Washington is not far out of reach with the flexibility offered by this type of arrangement.
One of the instances when a rent to own property agreement is recommended is when the tenant has a less-than-perfect credit. In this situation, there are very few available options when the tenant wants to buy a house. The kinds of interest rates that financial institutions would charge on loans to such a tenant are also very discouraging.
Tenants should be glad that rent to own properties are at their highest during times of economic downturns. The concept of rent to own properties is not a new one and is an increasingly popular option. One of the main benefits of this type of agreement is that you do not buy the property immediately. A rent to own property agreement is a mixture of a lease and purchase agreement. It therefore has two phases. In the first phase, the tenant pays monthly rent on the property for a specified amount of time. During this time, the tenant repairs his/her credit by paying rent in time. The second phase is the purchase phase. The tenant can buy the property at a set amount of money on a specified date.
In order to be in a position to get a rent to own property in Washington even with a bad credit, there are some preparations that a tenant has to make. The tenant should have a constant source of income such as a monthly income. The tenant must ensure that he/she can comfortably afford the monthly rental payment on a rent to own property.
The next step is to find an ideal house. The best way to do this is to go through a real estate agent who will provide the potential buyer with accurate information which is current. Most landlords don't usually offer a rent to own option for their property but a real estate agent can convince them otherwise. This is especially if the landlord has had no luck in selling the house.
The next step is the legal phase of the agreement. A tenant should ask for a contract from the seller of the house in order to make the transaction official. The contract should be looked over by a lawyer to ensure that it has been drafted properly and is not unfair on the tenant. The contract has several important clauses that directly affect the buyer's finances.
When entering into a rent to own agreement, the tenant must be committed to buy the property in the end especially due to the nature of the rent paid. There is a rent premium that is charged on the tenant. This means that the tenant pays a larger amount every month. The extra amount is taken to be a down payment on the selling price of the house. If the tenant decides not to buy the house in the end, the money is forfeited to the landlord.