Why Your Credit is So Important
Credit is a financial tool that allows you to purchase things now without having to pay for them right away. Your ability to use credit and repay the creditors on time, determines how much access to credit you will have in the future. Building a solid credit history enables you to buy more when you need it. This can be very valuable when purchasing a home.
When you apply for a loan on a home, the lender will run your credit to determine how much of a risk you are. By that, I mean what is the risk that they will not get the money they lent you, back. If you have a history of not paying your bills on time, then you are a higher risk to the lender. The clients that are a higher risk to the lender typically have higher interest rates. This is a sure way to get the money back at least in interest. I like to look at this as sort of a punishment for not keeping up with your bills and damaging your credit.
Having good credit is essential and very important when purchasing a large investment such as a home. You can still purchase a home without perfect credit however you will end up paying more in the end.
If you have poor credit, then you may not be able to purchase just yet. There are many programs however that specialize in improving/repairing your credit. These specialists will help you repair your credit by explaining exactly what you need to do to raise your credit. They can even tell you how long it will take to get your credit where it needs to be to either purchase a home and/or qualify for a specific program.
OwnACondo.com offers a Rent-to -Own Program that is great for people who need extra time improving their credit. The idea of this program is to rent for a specified period of time and make extra payments each month that will go toward a down payment and at the same time build your credit.
Although having an excellent credit score is vital to receiving the best interest rates and in the end save money, there are still programs that are available for people who are in need of repairing their credit. Keep in mind that it is always easier to prevent bad credit then it is to fix it.
Rent to Own a Chicago Condo
There are a couple of major reasons why someone would want to rent to own a Chicago Condo.  First, it is an excellent opportunity for cash strapped home buyers to accumulate enough down-payment to purchase a home. Secondly, due to recent economic conditions it is an opportunity to repair some credit issues that will eventually put you in a place to buy a home or condo.  There are some areas that need to be considered before you make the leap to homeownership.
What is rent to own and what kind of agreements are needed? Rent to own is in its simplest form renting a home or condo with the opportunity to purchase at a later date. The lease to own or lease-option agreement is both a lease that allows you to occupy the home and an option that allows you to purchase the home in the future at an agreed upon price. The typical agreement may offer a part of the rent to go toward down-payment or closing costs. For example, $200 a month may be applied toward the down-payment where at the end of the year $2400 has been accumulated towards the purchase.
One other area to be aware of when you are interested in a rent to own a Chicago condo is the lease-option is not an obligation to buy. It is an opportunity to purchase with the advantage of a known purchase price and a potential rent credit toward down-payment or closing costs. In most cases if you choose not to purchase the credited rent is usually forfeited to the owner which is a form of compensation to the owner to offer the option. Remember while you are there the owner cannot sell the property to someone else and remove you from the property so keeping a portion of the credited rent is understandable.
One last area to be aware of when considering a rent to own option is who is responsible for the taxes and insurance. There are also association fees when you rent to own a Chicago condo and who is responsible for them while you are leasing. Obviously the owner is responsible for these costs since he or she owns the property and enjoys any tax advantages that come with home ownership. Of course, once you have purchased the condo or home at the end of the lease option term, you will be responsible for the taxes, insurance, and association fees but then the property is yours and the satisfaction of being a home owner.
Rent to Own A Condo
Rent to own condos have been hotter than ever. With financing being more difficult to obtain and the amount of people being foreclosed on, rent to own condo programs have sprouted up everywhere.
Rent to own works by applying a portion of the rent each month towards the down payment of a condo. For instance, let’s say you are paying $1,000 a month in rent. The seller of the condo may agree to use $500 of that each month as a discount off the price of the condo if you close on the condo twelve months from the date of renting it. If the price of the condo is $200,000 and you typically would need a 5% down payment or $10,000, the $500 per month would add up to $6,000 at the end of one year resulting in only needing $4,000 for the down payment. This process really helps renters build up a portion of the down payment for a piece of real estate.
Rent to own condos in Chicago, Miami condos, New York condos or Los Angeles condos can be found everywhere. There are an abundant supply of product that is not sold by developers and this is a nice win-win for all parties. The tenant gets a chance to live in the unit they might possibly be able to buy a year from now and the seller has the unit rented for a year with a possible sale twelve months from now. The length of time for this process is always negotiable between the buyer and seller. It could be as quick as three months or last as long as five years. It really comes down to the parties involved and what everyone agrees upon.Â
Financing a condo that goes through a rent to own program can be tricky if you do not use the right lender. Most have strict rules on how much of the rent can be applied to the down payment. Just as negotiations with developers and sellers, banks and financing condos can be negotiated with as well. Make sure to evaluate at least three banks before deciding on your financing institution.Â
If you decide after living in the condo for a full year that you really do not want to buy the condo, if the contracts are set up correctly in the beginning, you are able to just walk away from everything. You would not be credited back with any of the rent but you would not be forced to buy the condo.Â
Rent-to-own a condo is a great alternative in today’s market place. Just make sure you find the right condo Realtor to guide you through the process.
Rent to own a condo
There are over nine million people in the Chicagoland area, and of those, more than 35% are renters. Just think of that. Over three million people rent in the Chicago area. It''''s OwnACondo.com''''s mission to change that one renter at a time.Â
It starts with educaton. Many condo renters have the ability to qualify to own a condo but have not been educated enough about how to go through the process of owning. OwnACondo.com has set up seminars that allow tenants to learn about the condo buying process from start to finish. They have rent-to-own seminars, one-on-one counseling and a website full of tips and question and answer sections to help any first time buyer.
If you really want to own, you can. If you''re credit challenged, that can be resolved. If you do not have a down payment, that can be worked through. No job? Bring in a co-signer or a roommate. There are endless solutions. You have to want to own first.Â
OwnACondo.com can take you through all the steps to buying your first condo. It starts with you. Pick up the phone and let one of their condo specialists take you through the steps. It''''s easier than you think and all of it is at no cost to you. Call them today at 866-696-2266 and get started to owning your first Chicago condo.
