Action Plan and Analysis for Rent to Own Client:
DREAMLIFE RENT TO OWN PROGRAM:
How are we different?
Whats the advantages of Rent to Own in our specific program?
One crucial part of our Rent to Own application is the analysis.
After your application is received we do a details analysis and present you different options.
We present to you your detailed analysis and action plan you need to complete in order to qualify for a mortgage at the end of the Rent to Own Agreement.
- Re-establishing Credit: In most cases tenant buyer has credit blips and needs to re-establish their credit by way of a secured credit card.
- Down Payment and Purchase Price at the end of the Rent to Own: We are qualifying you on your current income but on qualifying for a mortgage assuming that you complete the Action Plan we are laying out for you. We are conservative in our underwriting to allow for changes in legislation, interest rates, underwriting guidelines by lenders etc.
- Qualifying at the end of the Rent to Own: We need to ensure that you are qualifying on future interest rates… we use 4% to 7% interest rates in effect at the end of the Rent to Own Agreement. Being conservative to ensure this is affordable and that the tenant can execute on the Option to Purchase is key. The reality is that interest rates are unlikely to be this high, but at least if you have to source alternate financing at the end of the Rent to Own for the tenant, you already have a provision in their to handle this.
- Credit Improvement: In this section, we analyse your complete credit information and give you customized tips to improve your credit score. We do this on the basis of your application credit score and all the documents that you have sent us.
- Have We Missed Anything: If there is something that we have not covered in your Action Plan such as a bad debt not mentioned, you can let us know and we can update the file immediately.
- Income: We of course highlight your income stability and outline that you must keep it consistent.
- Mortgage at the End: This outlines what your mortgage may look like at the end of the Rent to Own based on the future value of the property. We ensure that the monthly payments here align with your budget requirements.
This analysis is really the first part of the rent to own process where we start to get things on paper and start discussing the vital parts of the process.
We encourage you to discuss with us the program and get all your questions answered once we have this analysis so that you can make up your mind whether this Rent to Own program is for you.