When you are buying a home, the sale takes places after the offer has been accepted and then the transaction is completed after closing. Since most people might not have the cash to make the purchase, the mortgage is usually the next option. The other thing that you should note is that other than the mortgage you can make use of the rent-to-own option.
The thing is that when you are making use of this option, some of the things that you should note is that the person who is using this option will be required to rent a house as they try to improve their credit score to qualify for the mortgage or get the down payment. The thing is that when the buyer qualifies to make the purchase they then do it and start owning the house. Some of the things you should note is that when you are doing this, there are some terms that should be met.
Option money is the rent-to-own agreement that the potential buyer pays the seller a onetime cash which is a non-refundable option for money. This is what will allow you to be able to make the purchase in the future. Though this is something that will give you the right to purchase but also the obligations. When you decide not to make the purchase then all that happens is that the contract expires. The thing is that this is something that can be agreed on when the contract is being signed and in most cases it is higher than the market price. In some instance this can be agreed to be the based on the market price in the future.
Even though this is the case, there is the option of the rent. When you are doing this, you should note that you have around three years to make the purchase. A percentage of each rent will be applied to the purchase price.
The thing is that when you do this, some of the things to note is that contract price. Some sellers will put the rent higher than the going rate so that they can accommodate the credit you are getting.
When it comes to the maintenance some of the things that you should note is that it is based on the maintenance. When you are dealing with the maintenance, some of the pointers you should put in mind are that the contract should be clear. When you are doing this, some of the things that you should note is that the contract needs to be clear on who is doing what. This is one of the things that you need to be certain that you end up getting nothing but the best results. This is paramount as you need to have a lawyer to aid you with the contract.