Buying a house (or an apartment) is part of almost everyone’s dream and, although there are those who believe that the only way to sign a mortgage is to get a large amount of money for the “down payment” or initial payment, the good news is that there is another option with many virtues.
It is about renting a property with an option to buy, a strategy also known as “financial leasing”.
This is an agreement where the current owner of the property receives the monthly rent as part or all of the initial payment, which allows him to move towards the purchase of the residence, even when he does not have an approved mortgage loan.
Advantages of making a rental contract with the option to purchase:
You can sign this type of contract for 6 months, 1 year or more, as agreed with the other party, which gives you space to settle down financially and live in the property of your dreams sooner rather than later.
The punctuality that you demonstrate at the time of payments could help you to become a “responsible customer” before a financial institution, which could open more credit doors in the future.
Peace of mind knowing that you are on the right track and that your money is producing for you, rather than for others.
However, this type of negotiation can bring with it some potential disadvantages that are worth considering.
In general, these obstacles have to do with what is stated in the contract … That is why you must understand what each word in the document means, and you must take care of each and every one of the clauses that may affect the final goal that is you buy your house.
Whether you default on one or more payments, or there is a natural disaster or some other eventuality, you – and your contract – must be prepared so that it does not negatively affect you.
Keep in mind that doing this type of transaction does not have to be a headache, but there is a great possibility that it is, if you do not rely on the knowledge of a real estate professional, or, as we say in the United States , of the real estate.
