You may be renting a home right now and thinking that you would like to own your own home someday. Many people choose homeownership for the permanency and security it provides for themselves and their loved ones. Homeownership offers the owner a number of personal and financial benefits like having pride in owning a home and income tax breaks. Besides, homeownership is often times a sound investment. For whatever reason, some people continue to rent despite the advantages of owning a home. Maybe they don’t have enough money for a down payment, or maybe they don’t qualify for a mortgage at the moment. Maybe they don’t understand homeownership and the idea intimidates them, or maybe they just haven’t decided to make the commitment. Well, did you know that you can rent to own a home? If any of the “maybe’s” above sound like you, then a rent-to-own home may be a good choice for you.
When a homeowner lists their property as a rent-to-own property and accepts an offer from a prospective tenant, they enter an agreement. In this agreement, the homeowner, who is now the landlord, and the tenant agree on leasing terms which include and are not limited to the duration of the lease and monthly payments. At this time, the homeowner takes the property off the market and the tenant pays an option consideration as compensation. The tenant has the option to purchase the property anytime during the lease or at the end of the lease depending on the agreement. The homeowner may also include the purchase price or pricing conditions in the agreement.
While you’re renting to own your property, you have time to build your credit score so that you may qualify for a mortgage loan. Per the agreement, a portion of the rent paid may be allocated to the purchase price of the home. Unlike renting without the option to purchase, your rent money can become investment money. Nevertheless, you could lose your investment if you cannot secure a mortgage loan or neglect to fulfill the terms of the agreement.
In the real estate industry, this rent-to-own option is referred to as a lease purchase and sometimes a lease option. There are subtle differences between the two, so be sure that you fully understand the type of property you’re considering and the terms of the agreement. Remember that this is your investment, so feel free to negotiate!
Get a Home Inspection
When you are looking to sell a home, one of the main things that you may want to consider is having a home inspection done. Though not one of the first thoughts on a seller’s mind, getting an independent home inspector to conduct a full inspection of your home will give you a head start on identifying issues with your home that may be found during a typical home sell. You may only have a few days to decide whether to make the repairs or adjust the asking price suitably when negotiating with the buyer. A pre-inspection can make you better prepared; you’ll be better prepared to brainstorm solutions that will satisfy you and the buyer. Plus, a re-inspection gives you more time to compare prices and treatment options from a variety of contractors.
By getting an inspection early, you’ll know what concerns and requests a buyer might have in advance. That allows you to set your asking price accordingly. Getting your home pre-inspected could help you avoid wasting money on unnecessary repairs. It could also help you avoid doing double-duty since the inspector can pinpoint problems and tell you exactly where the work is needed. When you are sure of the problems or repairs done on the house that you are selling, having someone look at the house professionally can help you identify things that you may have missed, and you are able to have a more profound look on what your potential buyer wants to see. The best part of it all is that you are saving money in the long run.
Maturity– The date on which the principal balance or amount of a financial/debt instrument becomes due to be paid and payable. Examples of financial instruments that have a maturity date are:
The maturity date informs the investor/lender of how long interest payments will be received and at what date the principal is expected to be paid in full.
For homebuyers, when you take out a mortgage loan you’re responsible to pay your investor/lender an assured amount of money every month for an agreed period of time. After the full amount is paid back as promised, the loan matures and the interest payments discontinue. When the maturity date is reached, the principal is paid back in full and the debt is completely satisfied, your lender will no longer have a claim on your property that you now own.
One of the fascinating luxury homes that you may want to consider is a Terminus Condo! Terminus condos are available for urban luxury and are located just in the heart of Buckhead. They are located within walking distance to all of Buckhead’s major shopping establishments like Phipps Plaza and Lenox Square.
The Terminus has many great features to offer its residents, and the price range starts from $229,000 – $549,000. Some of these magnificent features are:
- Two separate grilling stations and outdoor dining areas
- State-of-the-Art Fitness Center featuring a yoga stretching area
- Massage/Treatment room
- Lush landscaped pool area with stunning city views
- Two fully furnished private guest suites with outdoor terraces
- Media room/Game Room
- Dog Walk Area – private with special drainage system
- Saltwater Pool and Spa
- VIP Room Service from area/complex restaurants
- Secured parking
- Residential storage available
- Ample visitor parking available
- Wi-Fi included in the lobby and club level
- Round-the-Clock Doorman
- Daytime Concierge
- Dedicated Daytime Club Level Personnel
- Energy efficient windows
- Gourmet kitchens
- Spacious and classy walk-in closets
- Solid-core interior doors
- Spacious Club Room with bar, catering kitchen, indoor outdoor/fireplaces
You can choose from having a studio, one, two, or three bedroom unit with numerous floor plans to review for your specifications.
Each home in the Terminus that has been built puts one in the mind of superiority. The 14th floor amenities include:
- A saltwater pool and hot tub
- A dog park
- Grilling stations
- Catering kitchen
- Club room
- Fitness center
- Yoga area
- Media room
- Tremendous views of the surrounding area.
If you are looking for Buckhead luxury at eye-catching prices, contact The Go Getter Team to help you find your home at Terminus Condominium!
A HUD Home is the outcome of a foreclosure on an FHA (Federal Housing Administration) Home Loan. FHA Loans are federal assistance, and have generally allowed lower income Americans to borrow money for the purchase of a home. In some markets, the general sales for HUD homes have increased as much as 13% in 2012.
When a homebuyer with an FHA insured mortgage is unable to make the payments, the lender forecloses on the home. FHA pays the lender what is owed on the home, and the United States Department of Housing and Urban Development (HUD) takes full ownership of the home. Anyone who qualifies for a mortgage or pays cash can buy a HUD home, but only owner-occupants can take advantage of the $100 Down Payment Program. Owner-occupants must live in the house as their primary abode for at least 1 year and may not purchase another HUD home for 2 years. You can request that HUD compensates at least 3% of your closing costs.
One of the best advantages that comes with buying a HUD home is that government guarantees that the title is clean. Unlike an auction you can actually visit the property and see what you are buying. HUD homes are sold
“As-Is”, “Where Is”, without warrant, and will not pay for any repairs. HUD homes are also able to be financed, which is another great benefit to purchasing a home. HUD pays for the process of purchasing homes by using one of their contracted attorneys. That being said, you can get the benefit of not having to pay for regular costs of attorney fees.
The number of HUD Foreclosed homes in the Metro Atlanta area have dramatically increased over the past few years. With the number of HUD homes available on the Metro Atlanta market, buyers have the potential to take advantage of these opportunities.
Why should I use a Real Estate Agent to buy a home?
Your agent will give you their professional opinion regarding the price, location, and condition of any property that you are considering purchasing. If you are inexperienced in real estate, then you’re probably going to need a Real Estate Agent.
To begin, your Real Estate Agent can help you gage your buying power. Give your Real Estate Agent some basic information about your available savings, income, and current debt, and he/she can refer you to lenders best qualified to help you.
Next, your Real Estate Agent has many resources to assist you in your home search. Sometimes the property you want is available but not actively advertised in the market, and it will take some effort by your agent to find all available properties.
Finally, Real Estate Agents may assist you with negotiations. Here are a wide range of diversities that can affect negotiations when buying a home:
- date of possession
- repairs and furnishings or equipment
The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Overall, your agent can guide you through the closing process and make sure everything flows together smoothly for your buying experience.
Lately we’ve been working with a lot of buyers looking for homes in the Atlanta area. And with the large inventory of short sales and foreclosures on the market, we’re finding that these homes are selling fast!
No matter what side of town you’re looking, I encourage every buyer to make a clear and certain decision about the property they want to put an offer on. Once I submit a reasonable offer on my buyer’s behalf, then we put a time limit on the offer in order for the seller to respond. If the seller receives multiple offers in this market, it’s very common for them to call for the “highest and best” offer. In this case, I attempt to negotiate the sales price for my buyers but if they really want the property then this process can become very competitive. Negotiating the sales price and incentives for our buyers is our specialty and do everything we can to get buyers what they want.
If you’re currently on the market looking for a home then I highly encourage you to be ready to put an offer on a home you love. These homes are selling so fast and there are so many deals right now whether it’s a foreclosure, short sale, new construction, or previously owned home. What’s been your home buying experience? Post your questions on our blog today.