Rent to Own at Cleveland Ohio Mortgage
What should Tenant/Buyers look out for?
Unfortunately, some unknowing tenant/buyers will often be faced with dealing with unscrupulous sellers, who either don’t understand how the rent to own should work or the tenant/buyer will not be fully informed of what needs to be completed for a successful lease/option transaction.
In this writer’s opinion, tenant/buyers should consult with a competent mortgage broker as to what their credit history indicates, their financing options, and what they need to accomplish to qualify for mortgage financing. More importantly, how long will they need to qualify? The need for full disclosure of any property situation requires that the tenant/buyer work with a competent mortgage professional who understands the rent to own/lease-option purchase. It is important that the landlord/seller work with the mortgage professional to insure that everyone is in agreement on what needs to be done in order to have a successful transaction and future financing. The landlord/seller can play an important role in increasing the credit worthiness of the tenant/buyer by reporting rent payments to the major credit bureaus and contributing to the improvement of the buyer’s credit score (often overlooked). A team of people can make a successful rent to own agreement transaction work for just about any tenant/buyer and difficult credit situations. Rent to own is a great option for potential home buyers when other factors hold them back from conventionally purchasing a new home.
In addition, the tenant/buyer should be made aware that in the great state of Ohio, until an option is exercised, no landlord/seller can make them responsible for maintenance, repairs, and/or improvements. Not even a contract can make this valid. Also, in Ohio, lead paint and residential property disclosure forms must be used by the landlord/seller and the tenant/buyer (most often overlooked).