This is another necessary step toward buying a rent to own home that most families hate doing! I can totally understand, the last thing people want to do is to be told they can’t qualify because of this or that reason!
Don’t Sign ANY Rent to Own Contracts Yet!
About now, you’re breezing through the steps in our rent to own guide. You’ve got your credit report and have started the process with Sky Blue Credit Repair. Now you’re ready to dive head first into a contract for that perfect rent to own home, right?
No way! You need to speak to a lender NOW, before getting more serious about a rent to own home. Mortgage professionals are on your side. They can review the most up-to-date mortgage guidelines with you and simplify the complex procedures of the rent to own process.
The requirements to qualify for a mortgage are constantly changing! So even though you aren’t planning to purchase the home today, you still need to VERIFY that your family’s income can qualify you for your target purchase price. A mortgage lender can help you determine a timeline for you (and your family) to qualify for a mortgage.
The LAST thing you want to do is move into a rent to own home under a contract you can’t fulfill! I’ve seen it happen. A prospective buyer pays $5,000 upfront with a contract to purchase the home in 12 months, only to find out several months later they stood no chance of qualifying for a mortgage with the next 24 months. There it goes, $5,000 down the drain!
Don’t Expect Anyone to Assist YOU
The majority (99%) of sellers offering their home as a rent to own are not going to help you figure out if you can qualify for a mortgage within the time frame you both agree to. They either don’t know how to help you and all too often, they aren’t concerned with something that is really your problem to deal with…
The Quick and Easy Way to do This from Home
I recommend that you go to an online mortgage website like LendingTree. It’s a simple, no-obligation service where you enter in your basic information and LendingTree will find the best lender for your situation and have them contact you.
Whether you choose to contact LendingTree, another online mortgage site, or a local lender…
These are the questions I recommend you ask:
- Based on my current credit, how long will it be before I qualify for a mortgage?
- Based on my families income and debts, what home price can I plan on qualifying for?
- What items on my credit should I work on and what blemishes should I ignore?
- Using an FHA loan at the home price I qualify for(asked earlier) what can I expect to pay for a down payment and in closing costs?
When you contact Lending Tree, or another lender, make sure to write down the answers to the questions you ask! The home price estimates, down payment amount, and closing costs will be useful numbers in the upcoming steps AND when your doing your rent to own search.
And remember, we’re always looking for trusted, top performing companies that treat our readers WELL! If you find an online lender other than LendingTree, that you prefer, let us know.
Speak to a professional at LendingTree and clarify all those mortgage guidelines.