Buying a new home can be a complex process, and there are a variety of different approaches you can take that will greatly affect affordability and flexibility.
It’s important to understand the pros and cons of leasing to own as well as some of your other options.
Pros Of Leasing To Own
Here are the best aspects of a lease-to-own agreement:
- Rent may be lower than your house payment would be. If you expect to be stronger financially in a few years’ time, that difference could be important.
- If you aren’t sure yet where you will live years down the road or if you want to buy a particular home, rent-to-own locks in an option without locking you in.
- You secure the purchase price as well as the option to buy upfront.
- Buyers with poor credit scores can often get approved for rent-to-own homes, build up credit by paying their rent on time, and ultimately take the option to buy.
- A portion of your rent normally counts towards buying the home should you eventually decide to do so.
Cons Of Leasing To Own
Here are the main drawbacks to a lease-to-own setup:
- You may have to pay a little higher price for the house in order to enjoy the flexibility of renting to own.
- Only a fraction of your rent applies to the purchase of the house, and if you don’t decide to buy, none of it does. All upfront premiums are usually non-refundable.
- If the home value falls while you’re renting, you might not want to buy anymore. You would then have to go through terminating the agreement, finding a new home/apartment, and moving all your stuff.
Experience Homes’ Trade-In Program
If leasing to own doesn’t appeal to you for any reason, but you dread the ordinary hassle and problems that can come with being “between homes,” Experience Homes’ Home Trade-In Program might be for you.
Here are the major benefits this program offers:
- You pay zero realtor fees, which could save you thousands of dollars.
- Experience Homes buys your current home as a trade-in and applies up to 90% of its appraised value (the equity in it) to your new home purchase.
- You won’t get caught paying two mortgages for months on end, while in limbo between homes.
- There is no stress of trying to market your home or move out/in by a preset date. Experience buys your old home on the very day you move into your new one (if you wish.)
To discuss having your dream home custom-built by Experience Homes and/or to talk to us about our Home Trade-In Program, call us at 806-318-8686 or contact us online today!