The Pros and Cons of Rent-to-Own Offers

A rent-to-own offer allows you to rent a home before you decide whether or not to purchase it. It is similar to taking a car for a test drive or fostering an animal before deciding to make a full-time commitment. While being afforded this opportunity may seem appealing on the surface, it isn’t necessarily the best option for everyone. Let’s take a look at how to know whether it is in your best interest to do so.

How Much Time Do You Need to Qualify for a Mortgage?

If you only need 18 months or so to fix your credit or save up for a down payment, renting before you buy can be ideal. It means that you don’t have to worry about missing out on your preferred property in the meantime. While you get ready to qualify for a home loan, you can live in a safe neighborhood or provide your children with access to quality schools.

What If You Don’t Like the House?

If it turns out that you don’t like the house, you can find a new place to live without much notice to the current owner. However, it may also mean losing some or all of the money that you paid while living there. While this could be less expensive than being on the hook for roof or foundation repair, it could also set you back in your quest to save enough for a down payment.

Compare the Cost of Renting to Owning

Even if you are ready to buy, it could still be advantageous to rent for an additional year or two depending on local market conditions and other factors. However, the best Las Vegas mortgage brokers can work with you to find a loan and terms that meet your needs and your preferred home buying timeline.