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Q:
Is your rent to own program really "free"?
A: Absolutely! There
is no down payment. We only require a 1 month security deposit which you would
find on any standard lease contract.
Q: How long does it
take to "own" from paying my rent?
A: The program DOES NOT work
that way. You will eventually have to qualify for you own mortgage to buy the
house. Our program allows you to rent the house you want to buy, and then assists
you to become a qualified buyer. While you are renting, we will credit you 20%
to the purchase price.
Q: If I choose the new home program,
does this mean I can just pick any home on the market?
A: No! It has to
be a house that we can "buy right". The investor buying your home is
not doing it to be nice. They are doing it to make money. We have to get the house
at a discount so that you can buy the house at a fair price. We do this by buying
builders' new home excess inventory, foreclosures, HUD, and VA homes.
Q:
How do I know I am getting a fair purchase price?
A: You will have signed
a Buyer's Agency agreement with us, which legally binds us to serve your best
interest. Making you pay too much for a house would not be in your best interest,
and we could be held responsible by law.
Q: When I sign a lease option,
can I be forced to buy the home?
A: No, no one can force you to buy anything.
This is just an option to purchase. If it turns out you don't want to buy the
home, you don't have to. It will be like you have just been renting. You will
not incur any penalty.
Q: Is the option price negotiable?
A: Sure. When we set the option price, we project what we feel a fair market value
will be in 2 years. The majority of the time, the option price will be less than
the market value in 2 years. On occasion it is possible for our projection to
be over market value. If this happens we will be the first to let you know and
help you make an appropriate "counteroffer." Setting an option price
is a benefit to you the buyer. It gives you a set price which cannot be raised
for the term of the contract. The price of course can always be lowered.
Q:
What happens if I am not ready to buy in 2 years? Will I lose the option and my
rent credits?
A: No, not at all. We understand that it may take some people
3-4 years to become a qualified buyer. If at the end of your 2 year lease option
you are not ready to buy, we will simply renegotiate a new 2 year lease option.
All rent credits earned will still be applied towards the purchase price of your
home.
Q: How much of my rent goes towards my "rent credit'?|
A: Generally about 20%. Your rent is 120% of the monthly cost of the home.
We take the remaining 20% and apply it towards the purchase price.. This formula
is used to help you qualify for a home. When the mortgage company sees you have
been making steady monthly payments greater than the amount you need for a loan,
that is a big plus in their eyes! You have proven that you can pay 120% of the
cost.. so of course you should be able to pay 100% right?
Q: I've
seen some companies offer 25-50% rent credits. Can you do this?
A: No,
and you don't want to do this either! Anything over 20% should make you very cautious.
Chances are they have inflated the price of the house, or are overcharging you
in rent. You don't want either of these things to happen. It's just not possible
to give you that much credit AND a good deal on a home. Large rent credits are
also a red flag to mortgage companies. They are usually a sign of some sort of
fraud, and accredited mortgage companies WILL NOT accept them.
Q:
How does Timothy Cline get paid?
A: Because we are licensed by the NC
Real Estate Commission, we are legally qualified to collect commission payments
from the seller of the homes we buy. So when you choose a home, we get paid by
the seller of that home. This is why many unlicensed companies ask for a down
payment. They keep that money for themselves, because they cannot be legally paid
a commission from the seller of the property.