Q. 1. How to select a R-T-O home and how much money would be required?
Ans. Firstly, you need to qualify our criteria to be eligible for ‘Rent to Own’ program. After that you’ll be introduced to a real estate agent of your area for shopping a new home. Home budget would be set after considering some elements including monthly lease payment, down-payment and the final purchase price. We will make sure you choose the right home at the right price.
Q. 2. Shopping MLS listings is a great idea but I want to buy the home I have an eye on, do you have any solution for this?
Ans. Yes, we do have the right solution. As mentioned above, we can surely try to buy the home that you are impressed with and having an eye on.
Q. 3. I have a bad credit score and am a defaulter before bank’s eye – Am I Eligible for Rent-to-Own?
Ans. You’ll be glad to hear that most of our clients have bad credit scores. You still have the opportunity to get your dream home provided you have strong and steady income that is capable of solving your credit issues during the lease period.
Q. 4. Is prior down-payment essential as I don’t have any money?
Ans. Yes, we do require some down-payment for every property. This is crucial to ensure that your eventual purchase is successful. It is advisable to seek assistance from family members or investors for down-payment.
Q. 5. How to be a good Rent-to-Own candidate?
Ans. Low or No Credit – Rent-to-Own is effective alternative for those who have credit issues or had a bankruptcy in the past. But you need to plan out a strategy that could track down your bad credit scores. We have designed programs for solving such issues.
New to Canada – The new immigrants need to overcome loads of procedures to get eligible for a mortgage. However, Rent-to-Own provides you the platform to buy your own new home at the earlier stage without any hassle.
Self-Employed for Less than 2 Years – Newly self-employed, especially who have been around for less than 2 years would bear numerous hardships to get eligible for a mortgage at a bank. Moreover, most of the lenders would also ask for your self-employed income history for loan. ‘Rent to Own’ is the best alternative for self-employed to get their dream home without affecting their business goals.
Q. 6. How long do I have to wait to get into my new home?
Ans. Generally, it takes 6-12 weeks to arrange a new home. The completion of the process relies on the home you choose and vendor’s deal settlement status. When the home is empty to move-in, the deal generally closes within two weeks. On the other side, when the vendor is living there, you need to wait till they find the new home to move on.
Q. 7. What type of legal documents required for completion of the process?
Ans. There are three legal agreements involved in Rent-to-Own plan:
- Lease Agreement – Providing the rental term and payment conditions
- Occupancy Agreement – Highlights responsibilities of the property owner and tenant
- Option to Purchase – Outlines eventual purchase price along with the closing details
It is advisable to consult a lawyer for legal transactions.
Q. 8. Am I free to do any improvements to the house?
Ans. Yes, you can make improvements to your home for adding value to it. But do consult us once before any major improvements or upgrades.
Q. 9. What is the duration of Rent-to-Own Program?
Ans. The rental period is generally of 1-2 years but that could be extended to 1-5 years too. You are allowed to buy the property anytime before the agreement expires.
Q. 10. What about the property taxes?
Ans. Before you purchase the home, all the property taxes are subject to be paid by the owner. During your rental period you are not supposed to pay any property tax.
Q. 11. How much down payment is required to be paid?
Ans. There is no down-payment rather there is a Non-Refundable Option Consideration. This option consideration is a legal condition that is imposed both on the seller and the buyer. This outlines the mutual agreement of the lender and buyer over the certain conditions. This payment is refundable when you buy the home without violating any lease condition.
To get started with the process 3-5% Non-Refundable Option Consideration is required. Lawyer fees, contact fees, credit coverage fees, property management fees and more are covered with it. You can pay off future loans with the refunded money as well.
Q. 12. Is option consideration non-refundable?
Ans. Yes, if you end the lease or don’t pay the rent then, all your option consideration money will be forfeited. You get the option consideration money refunded only when you purchase the home after paying the eventual purchase price.