In a typical home buying situation in Santa Barbara, the sale usually takes places right after the offer has been accepted by both parties. Since, most home buyers do not have money to pay cash, a mortgage is always use to finance the purchase of the property. The buyer gives a certain percentage of the price and pays the lender in regular basis for the installment for a period of time until the balance is paid off.
For a buyer to qualify for a mortgage in Santa Barbara Iloilo, he or she must have a good credit score and cash for the down payment. Without this, purchasing a property in a traditional way may not be an option. However, there is an alternative option that you can apply here. It’s called a rent-to-own agreement. If you are planning to do a rent to own houses in Santa Barbara, Iloilo, then you better learn this process.
When buyers sign the rent to own contract, they agree to rent the home for a particular period of time before deciding whether to purchase the property or not.
So, how does rent to own works?
What are the Elements of a Rent-to-Own Contract?
If you are planning to rent to own houses in Santa Barbara, Iloilo, you must understand that in the rent to own process, a potential buyer gets to move into a house right away. They have several years to work on to improve their credit score and save for the down payment.
In a rent to own agreement in Santa Barbara, the buyer typically rents the property for a set amount which must be paid in for a period of time. However, rent to own houses is not as simple as paying a rent for three years and buying the house after that. In this process, certain terms and conditions must be follow in accordance to the contract.
The Option Money
Potential buyers pays the seller non-refundable fee called option money. This provides him an option whether to purchase the house in the future or not.
In here, it is important to take note of the lease-option contract which will give the buyer the right to purchase with the lease expires. If in the future, she decides not to purchase the property at the end of the lease contract, then the option can simply expire.
The Purchase Price
When and how the purchase price of the property will be determined depends on the content of the contract. Typically, the seller and the buyer agree on the purchase price the moment the contract has been signed. The price is often higher than the current market value of the property.
In some cases, the seller and the buyer agree to identify the price when the lease expires. In here, the price is often based on the market value at the future point in time.
Advantages of Rent To Own House and Lot in Santa Barbara Iloilo
It is just a waste of time and money paying for monthly rental fees for a house that cannot be yours. And even buying a new house can be a struggle to you. The resolution for these difficulties is to pursue a rent to own house and lot in Santa Barbara, Iloilo.
Through this resolution, the money that you are taking out of your pocket is going somewhere. Even if you are paying out for monthly rental, you can be sure that it is worth spending.
Renting a house in Santa Barbara and lot that will be yours eventually has lots of benefits. To learn about the advantages of pursuing a rent to own property, please read on.
Less to No Down Payment. Most of the rent to own homes owners in Santa Barbara, Iloilo are offering affordable to no down payment. If this is the case, the only payment you will give is for the rent of the house. This also means that you still have the time to tryout the transportation, market, malls, office location, schools accessibility, and most especially the house itself, if you will get the feel of it.
Paid Thru Pag-IBIG. If you are on a tight budget, paying your monthly rental through Pag-IBIG Housing Loan program is one thing you should consider. Same as buying a new property in Santa Barbara, Iloilo, pursuing a rent to own home can also be paid through Pag-IBIG Funds. This will make your payments light and easy on the pocket.
Affordable Monthly Rental Fee. Most of rent to own properties are offered in an affordable monthly rental charges, just like renting an apartment. The only difference is that you will soon acquire the house you are renting monthly, unlike with an apartment.
Ready for Occupancy. Unlike the houses that are sold by property developers, rent to own house and lot in Santa Barbara are usually ready for occupation. This is ideal especially for those who are in a rush to move from one house to another, for certain reasons. There are also houses such as this that are fully furnished so you will not worry about your furniture anymore.
Located in Cities.One of the best benefits of lease to have residences in Santa Barbara is that they are commonly situated in cities. You can select a residence located in the city where your job location is near or near your youngsters’s’ school, if you have kids. This will certainly also give you more financial savings on your transportation expenses.
Lease to have house as well as great deal in Santa Barbara is really optimal for you, if you are on a tight budget and also quickly to have a home near your workplace or your youngsters’s college. Going after a home and also lot through this will certainly likewise result in wonderful savings.Article Source: http://EzineArticles.com/7532391
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