There is no typical rent-to-own candidate. Everyone’s financial situation and living needs are different, but there are some general guidelines that make for a good rent-to-own candidate.
First, ask yourself: “How badly do I want to be a homeowner?” Renting-to-own is not as easy as renting – the process can take several years (from finding a home to improving your financial situation) and you’ll have to make other trade-offs and sacrifices along the way. If owning a home is your number one goal, then you are on the right path by visiting iRentToOwn.com.
Second, we need to make sure that at the end of the rental period you are well positioned to purchase the home. This is the most important step. To be well positioned to purchase a home, you MUST be able to qualify for a mortgage, which means you’ve saved a down payment and have a good credit score. That does not mean you need your down payment now or must have a good credit score now, but you do need to be able to save for the down payment and improve your credit score over time, while you are renting the home.
Mortgage qualification standards are tougher than ever, and if you don’t qualify for an FHA loan, you will likely be required to put down 20% of the purchase price as down payment. On the credit score side, a minimum score of 620 is required, though higher scores are naturally preferred. To reach these qualification goals, you must be willing to cut your expenses to save for the down payment, pay down any outstanding debts and consistently pay your bills on time to improve your credit history.
Once you pass the first two qualification steps, the last one is quite simple: Are you ready to make those changes today? If so, take stock of your financial situation and begin your search now.
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