If you are looking at rent to own homes listings, you may be aware that most people who get into a rent to own home never end up actually purchasing a home. Very often, it is because they make mistakes in the rent to own process. Here are some common mistakes that you want to avoid!
Not Immediately Working on Credit Restoration!
It is no secret that most people do not really understand what it takes to repair their credit. This is no surprise! The reality is that there is more bad information out there than good. Not knowing what to do, combined with good old fashioned procrastination, leads many people to just do nothing.
They think that they have all the time that they need, only to find out that credit repair takes far longer than they thought. In the end, they end up losing their option fee, rent credit and the home that they had dreamed of owning.
Executing a Contract that Doesn’t Allow you Adequate Time to Qualify for a Mortgage!
When you begin looking at rent to own homes listings, you may be so focused on just finding a house that you can get into that you fail to think of anything else. Home sellers will always want you to take their mortgage out as soon as possible, so it is up to you to make sure you establish a realistic time frame. Unless your income documentation is already in line, and your credit is such that you almost already qualify, you should get a term of at least two years. Had a recent foreclosure? You will need at least three years in which to qualify.
Not Talking to a Lender First to Understand What it is Going to Take to Get a Mortgage!
Unless you talk to someone who understands today’s lending guidelines, you run the risk of some small detail standing in the way of you getting a mortgage. Make sure you have the lender review your current income documentation as well as pull a tri-merge so that they are looking at the same report that will be used for mortgage qualification.
