Securing A Home Loan Is No Easy Task

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One of the greatest feelings a person can experience is the sense of accomplishment. Buying a new home evokes joyful emotions as well as a sense of achievement. A new home owner often has worked their entire life for this experience; for the right to be able to call themselves a proud homeowner. It is the American dream sought by millions; a huge milestone. Renting is convenient as it provides a place to live without a long term commitment, it does not however provide anywhere near the gratification that comes with home ownership. The prestige of owning a home is no easy task, it takes years of hard work, financial planning and saving. Securing a home loan is a long road and great financial preparation must take place. During the subprime…show more content…
With the job market now stronger, many people have money saved and are surely eager to own a home again. Rent-to-own is a convenient way for many to bring themselves back into home ownership. The way rent-to-own works is that the renter pays a little extra every month to down pay the price of the home. This does several things, first it brings up their credit score to give them a better shot at landing a mortgage. Second, it brings down the price of the home and makes the long term payments lower and therefore easier to pay. When the subprime lending took place many people put down very little for their homes causing their monthly rates to be high. With the lower rates comes a better opportunity at home possession. It also ensures that a person is ready for home owner ship, paying the extra money for the duration of the term proves that they have a steady income and are able to contribute to the mortgage. During the crash, banks gave out loans which required minimal down payment with hefty monthly payments, rent-to-own has the potential to reverse that. As with benefits of the rent-to-own, there are also draw backs. For one, if things do not work out and onefalls behind in payments they may lose their entire investment. Not qualifying for a loan at the end of the contract term could also

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