2222 E. State St. Suite 207 Rockford, IL 61104 (815) 316-2411 www.SouthwoodPMR.com www.RentRockford.com
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Rent To Own Frequently Asked Questions
How Does Rent to Own Work? What Happens if I do not Fullfill the Contract? What if I Have Bad Credit? When Can I View a Property? Do Any of the Properties Accept Pets? Do I Have to Pay an Application Fee? Besides Credit, What Else is Considered in the Application Process? What if I Have Been Evicted?
How Does Rent to Own Work? There are many ways to structure a rent to own contract. This is most common with single family homes, but can sometimes be applied to multi-family buildings. The owners that are interested in this type of program usually ask that the potential tenant/buyer goes through the normal prequalification process. This will help the owner determine the likelihood of the tenant/buyer being able to meet the terms of the contract.
In most cases the owner will set aside a part of the rent as a down payment for the tenant/buyer. The contracts will vary in length depending on the owners requirements and the tenant's/buyer's ability to buy.
Step One: Fill out our Rental Application. You can return the application to us by fax (888) 242-2988 or by e-mail You can also call us at (815) 316-2411 to set up an appointment to return the application.
We can not start the application process until we receive the $20 application fee per applicant. You can pay this fee online by Paypal, which also accepts bank transfers, and most major credit/debit cards.
We will send your application to the owner of the home you wish to rent. If approved you will then need to speak with a mortgage representative.
Step Two: Meet with a mortgage professional of your choice. Click on the Financing tab above for some of our preferred mortgage representatives. During this meeting you find out what it will take for you to able to buy the home at the end of your contract. This is solely informational and is by no means a pre-qualification. Lending standards can change quickly and therefore it is impossible to grantees you will be approved for financing.
Step Three: After talking to a loan officer you will have a plan on how to fix your credit and hopefully be on your way to home ownership. We will then walk you through the lease purchase contract and negotiations.
Step Four: If you make your payments on time for the length of the contract and the credit restoration was successful you can then purchase the home.
Southwood Property Management and Realty LLC can not guarantee that you will be able purchase the home at the end of the contract. Due to changing lending standards we can not guarantee that you will be able to buy a house after the term of the contract. Other factors like employment changes can also affect you ability to purchase the home.
Back to Questions
What Happens if I do not Fullfill the Contract? A lease purchase agreement is a legally binding document. If you do not perform on the contract you will loose any rent that was put towards your down payment, and possibly the Security Deposit and/or Earnest Money depending on the situation.
What if I Have Bad Credit? As with many things there are varying degrees of "Bad Credit". Some issues can fixed easily, and some issues are harder to fix. After filling out our application, we will have a better idea if you will be able to fulfill a lease purchase agreement.
When can I view you properties? We try to be as flexible as possible in our showing times. We understand that each person has their own schedule and we try to work with you on a time that is most convenient for you. Call us today at (815) 316-2411, or e-mail us to set up a showing.
Do Any of the Properties Accept Pets? Each owner has their own pet policy when it comes to allowing pets. Some owners will allow you to pay an extra security deposit, but may have restrictions on what types or sizes of pets they will allow. Call us today at (815) 316-2411, or e-mail us for property specific pet policies.
Do I Have to Pay an Application Fee? We charge a $20 non refundable application fee to run a credit check on any and all adults over 18 that will be residing in a property.
Besides Credit, What Else is Considered in the Application Process? We try to give our owners as much information as we can about any potential tenants/buyers. This includes, but is not limited to:
As we mentioned above, we do not make the final decision for your application, so we can speculate as to how the owner will react to certain situations.
What if I Have Been Evicted? If you have ever been evicted, we will find out through our screening process. It is probably in your best interest to save the application fee. We highly discourage the accepting of anyone who has ever been evicted from a previous rental property, and may choose not to work with owners that do accept those who have been evicted.
