Lease-To-Own: The Smartest Way To Become A Homeowner

A homeowner holding keys to a house they just purchased in the current market

Most buyers agree: it can be difficult to buy a house during tough economic times.

The problem is, the best time to buy a house is always now. If you don’t enter the market today, you risk being priced out of a purchase tomorrow. And with rent payments throughout the country at an all-time high, it’s harder than ever to save for a down payment on a home.

The real estate market is rough, interest rates are high, and many people are afraid to take on a traditional mortgage. But don’t worry! There is another way to buy a home that can help you reduce your commitment and protect yourself from the risks associated with taking on a mortgage.

Rent-to-own can open the door to becoming a homeowner sooner if you are having a hard time with high-interest rates or qualifying for a mortgage! Leasing a home with a right-to-purchase agreement is a great way to get into the market now and start taking risk-free steps toward becoming a homeowner.

Why are people hesitating to buy homes in the current market?

Fluctuating interest rates and recent home value trends have made buyers hesitant all across the country. But in the current market, there are even more reasons for people to hesitate before buying a home. Many worry they’ll take out a mortgage, lose their job if the economy tanks, and be unable to afford their homes.

No matter the market conditions, people are always hesitant to buy homes. After all, it’s a very big purchase that comes with a lot of risks. But everyone needs housing, so this fear isn’t a good reason to avoid buying a home. Wait long enough, and you’ll end up paying more in rent than you would’ve if you bought a home outright!

What influences interest rates for mortgage loans?

The Federal Reserve, or “the Fed,” is the United States central bank and sets monetary policy based on current economic factors like inflation and unemployment rates. The Fed determines the interest rate at which banks lend money to each other overnight. When this rate changes, it indirectly affects longer-term interest rates like mortgage rates.

In addition to the Fed, other factors that influence mortgage rates are:

  • The well-being of the overall housing market
  • Lenders’ expectations for future inflation
  • The availability of credit

If you’re thinking of buying a house in the near future, it’s important to stay up-to-date on these economic indicators and how they might affect mortgage rates. Keep in mind that while higher interest rates may make monthly payments more expensive, they also make it easier to save for a down payment if you intend to buy a house with traditional financing options.

A home recently bought through a lease-to-own agreement

Is it possible to safely buy a home in today’s market?

Leasing a home with a right-to-purchase agreement allows you to lock in today’s prices and gives you the flexibility to purchase the home at any time during the lease period. This makes it a great choice for people who are unsure about job security or future plans.

Right-to-purchase agreements provide a safer way to enter the market now without committing to a mortgage of 15 years or more. Because buyers aren’t obligated to purchase the home, they can treat their lease like a normal rental agreement if they decide not to move for any reason.

The current market conditions may make buying a home seem like a risky investment. But with the right approach, you can buy a home safely and without overspending. No matter what route you choose, be sure to do your research and work with experienced professionals to ensure that you’re making the best decision for your unique situation.

How does leasing to own reduce risk when buying a home?

Leasing with a right-to-purchase agreement essentially lets buyers “try before they buy.” If they decide to purchase their home during the course of the lease, buyers can apply a portion of their rental payments towards the cost of the home. If they decide to pass, they simply walk away when the lease ends like they would with a typical rental property.

For home buyers looking to enter the market during uncertain times, this type of agreement can provide some peace of mind. By locking in a purchase price upfront, buyers are protected against potential increases in the cost of the home over the life of their lease.

In addition, they may have an easier time qualifying for a mortgage at the end of their lease since they will have already established a good payment history.

A home purchased with a right-to-purchase agreement in Colorado Springs

What can I do to reduce costs when buying a home in today’s market?

Look into buyer rebates from different sources. For example, offers every homebuyer $2395 in credit towards their closing costs or other expenses when they buy with us. Additionally, some sellers may be willing to pay closing costs in order to close on their property more quickly.

When considering how to reduce the cost of buying a home, it’s important to weigh all your options and consider what makes the most sense for your unique situation. Choosing a financing option that makes sense for your budget is the most direct way to reduce your down payment and take advantage of conditions in the current market.

Vantegic lets you lease a home with the right to purchase

Ready to try your next home before you decide to buy? Lease a home with a right-to-purchase agreement through Vantegic. Lock in your purchase price and experience everything your favorite neighborhoods in Colorado Springs have to offer before making the big decision.

If you decide to buy, we provide $2,395 of our own money to help you cover closing costs. If you decide not to buy, no harm, no foul. Walk away at the end of your lease with no penalties.

Leasing a home with the option for purchase is a great way to lock in the low prices of today’s market as you inform yourself and prepare to buy a home. Contact us today to learn more about which financing options are best for you and get a fantastic deal on your next property.

Walk a little taller as you enter the home buying process.

Read these 10 important steps and gain the confidence to enter the real estate market like a pro.