Have You Been Declined For Home Financing Or Facing Power Of Sale?

1. Have You Been Declined For Home Financing Or Facing Power Of Sale?

2. Synopsis • Rethinking Homeownership For Canadian Newcomers • What to look for in a Rent to Own program • Top 3 Benefits Of Rent To Own Programs • Foreclosure Doesn’t Have To Mean Losing Your Home! • How Bad Credit Management Can Impact Your Life

3. Rethinking Homeownership For Canadian Newcomers • There are various rent to own programs, each with its own set of benefits. One would be a lease with the option to buy the end. This works pretty much like a basic home lease; the tenant pays rent as normal and has the option to buy the property at a later date for a price that has been agreed upon at the beginning of the contract. More specifically, imagine the home you are looking to own is worth $280,000. By entering a rent to own contract, you will have the right to purchase the property in a couple of years for $310,000. • Another option would be renting to own through installments. This type of contract requires the tenant to pay the seller/landlord what is considered to be the rent and an extra payment that is deducted from the house’s selling price. The advantage of this program is that once the value of the house and the price are agreed upon, you get closer to owning the property after every installment made to the seller. It also means that regardless if the property’s value goes up, you will still have to cover the pre-agreed price. Important to note here is that if as a buyer, you will miss one or more payments, the seller has the power to take away all equity and dissolve the contract.

4. What to look for in a Rent to Own program • Best teams are cross-functional and robust • Buying a home is one of the biggest decision an individual or a family will have to make. Accessing the right services to do so is just as big. Research well and look into hiring companies with teams made of industry experts such as mortgage brokers, real estate agents, lawyers, accountants and other business professionals who understand the ever changing real estate market and can offer appropriate counsel. • Look for history and testimonials • Having been on the market for a decade or more is a tangible sign of success. It now only shows determination and consistency, but also touches on the idea that they know what they’re doing which is why they’re still on the market and have a deep understanding of the real estate market in the area. Probably equally or even more of a proof are client testimonials and now with social media channels running many aspects of our lives it is very easy to see what other people are saying about the company. High customer satisfaction results cannot be faked and they are a token of business being conducted efficiently and effectively.

5. Top 3 Benefits Of Rent To Own Programs • Get your dream home now and pay over years • Typically, when entering a rent to own agreement, an Option to Purchase is included in the contract. This means that for a monthly fee, the now tenant future owner acquires the right to purchase the property usually after two or three years at a set price. The monthly fee that goes on top of the rent is considered to be a down payment and it can be between 2 to 2.5% of the overall property price. The idea behind this is that by the end of the arrangement, this will come up to 5% and potentially, the tenant would have built their credit scores enough to qualify for a mortgage in order to close the deal. • Settle in your future home and test waters • There is no waiting list or lengthy process associated with a rent to own program. You and your family have the possibility to move in as soon as everything has been agreed and signed.

6. Top 3 Benefits Of Rent To Own Programs • As one can only know the ins and outs of property only after having lived there for a period of time, a rent to own program enables renters to experience the neighbourhood and the house itself before committing. This means you will actually have two option when the contract ends: save enough money to apply got a down payment on the property, or just leave and find another place that suits your needs more. • Getting more than what you’ve asked for • Due to the fact that the property price is negotiated between both sides, this means that price is fixed and final. Should the property’s value increase over time, the renter fully benefits from that and the owner is not entitled to increase the price. While this sounds like a great plus, it is equally important to bear in mind if things go south and the price gets reduced. This is a risk that you would have to take, but having experts evaluate everything for you prior to binding yourself to a contract can help foresee future trends and predict the market.

7. Foreclosure Doesn’t Have To Mean Losing Your Home! • A power of sale is usually a much lighter and faster sale process, happening in just a few months after the borrower omitted to pay mortgage. It permits the lender to take ownership of the property and sell it in an effort to recover any monetary losses. As a borrower, this is a very unfortunate situation where a person is not only stripped away from their home but depending on circumstances they might also be obliged to cover any associated costs or debts from the property. Foreclosure is more complicated, it takes longer and it involves a number of lawyers and court appearances, thus making it very expensive. • A National Lease Purchase (Rent to Own) company can provide solutions. Home Owner soon is one of these companies. Most borrowers don’t realize that stopping the foreclosure and keeping their house is a valid option and this is because they do not have the financial resources to do it. What happens is that your mortgage gets refinanced, regardless of your credit scores and the foreclosure stops. This ensures the borrower gets to keep their home. At the same time, a credit mentoring program is kick-started to offer the necessary guidance and management so that the borrower not only gets out of a tricky situation, but it also ensures their credit scores improve.

8. How Bad Credit Management Can Impact Your Life • Bad credit management can make life increasingly complicated, from stopping you from getting the job you want to denying you the possibility to buy a car or rent your dream home. Having bad credit scores is an indication that you are a risky borrower and that decreases your chances of accessing a loan or a mortgage. • And it does not end here. Utility companies, such as gas and electricity providers also check your credit when applying for their services. Having outstanding bills minimizes your credit worthiness and they might ask you to pay a security deposit in advance to you being able to access the service. Similarly, when trying to rent a property with a poor credit, the landlord may be inclined to ask you to cover as many as six months’ rent prior to you moving in. • Insurance companies also check for credit as it is believed that lower scores are associated with higher claims filed. This means that if your credit scores are unsatisfactory, they are able to slam higher premiums without taking into consideration how many claims you’ve actually filed so far.

9. How Bad Credit Management Can Impact Your Life • If you plan on starting a business and need to access funds from a bank or a creditor, bad credit creates obstacles in your way. You might’ve worked for years to put a business plan together and gather all the necessary data and figures only to have it all gone down the drain because of a poorly managed credit. • What can I do to avoid bad credit? • There are a couple of things you can look out for to avoid your credit scores going down. Payment history is among the major decisive factors. It may not seem like a big deal but paying bills on time or ahead of time positively affects scores and it shows that you can be trusted with a financial commitment. Credit use history is also something you should be carefully managing. Many credit score models are based on the concept that past behaviours usually predict future ones. This is why when a credit check is performed, all of your accounts both old and new are evaluated and generally, it is better perceived to have had a long and clean credit history.

10. The End For more details, please visit: https://homeownersoon.com/rent-to-own-program