Often times, I encounter individuals who aspire to one day purchase a home, but due to varying circumstances, are wondering if they could ever get on the path of home ownership. Many times, people find themselves renting a home for years, without taking the necessary steps to position themselves to make the dream of home ownership a reality. The key to success when it comes to home ownership is to strategically position yourself in the rental market with the end goal of ultimately providing the necessary means to own a home. There are many factors to consider and surprisingly… it may not be as difficult as you think.
The most important factor, in my opinion, is to rent a home from a reputable landlord that provides a lease-to-own option. When renting a home with a lease to own option, a percentage of every on-time monthly payment you make towards your rent, converts and becomes part of your down payment if you choose to “exercise your option” to purchase the home. This method allows you to essentially create a down payment from the rent you are already paying, instead of all of your money going towards the rent only. This method also “forces” you to save money towards a down payment, and is a great option for individuals who find themselves having a hard time saving money for a down payment.
Also, it is vital that you work with a landlord that has a proven track record with years of success getting people on the path to home ownership. If you have been denied in the past for a mortgage, a reputable landlord with a proven track record will assist you with the qualification for a loan by providing you with resources to lenders who can get you approved, and more importantly, will help you build or repair your credit by reporting your timely rental payments to the major credit reporting bureaus.
There are solutions; here at rentMACK, a division of Oak Park Avenue Realty, LTD, we have been the leading provider of lease-to-own single family homes in the south suburbs of Chicago for nearly 2 decades, helping individuals and families make the dream of owning their own home a reality.