Unintended Credit Problems: They’re More Common Than You Think

If you’ve ever had problems with your credit score, you know all too well how frustrating it can be. Whether you’ve been denied for a line of credit or you’ve had difficulty getting approved for a mortgage, life can get complicated as a result of credit issues.

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There are a variety of reason why someone might run into credit problems. Most are unexpected! Unforeseen circumstances, such as job loss, divorce, or property damage, can quickly strain finances, leading to missed payments and increased debt amounts.

Credit problems can happen to anyone, and they’re more common than most people want to let on. In some cases, inexperience and a lack of credit education can contribute to credit issues early in life. In other instances, credit issues can arise well into adulthood, stemming from a variety of unpredictable circumstances.

It’s important to know that credit issues are solvable. With education, budgeting, and time, it is possible to rebuild your credit, get your finances in order, and even get approved for loans and mortgages.

JAAG’s Rent to Home Solution includes a Credit Education Service that helps you build financial stability through consistent and flexible monthly payments. And we offer a Credit and Education Service tailored to your specific situation.

What is Rent-to-Own Housing?

In real estate, the term rent-to-own (RTO) typically refers to an innovative homeownership solution, wherein a potential homebuyer enters into a lease-purchase agreement.  The process usually consists of four main parts:

  1. Finding and moving into a home today.
  2. Renting for a predetermined period of time (typically 36 to 48 months).
  3. Strengthening credit and finances to qualify for a mortgage.
  4. Purchasing the home at the end of the contract for a predetermined amount.

Rent-to-own agreements are designed to help get people get into homeownership sooner by offering an alternative financing solution. Someone who is struggling to qualify for a mortgage can enter into a lease-purchase contract with a trusted rent-to-own company, like JAAG Properties, enabling them to move into their future home today. [*]

Potential homeowners have the option to enter into a rent-to-own lease agreement for a set period of time (typically 36 to 48 months), with the option to purchase the home at the end for a predetermined price — (The final purchase price is agreed upon at the beginning of the contract. And the house will be sold at the agreed upon price, regardless of fluctuations in the market by the end of the deal). [*]

During the lease period of the rent-to-own contract, the “tenant” is required to make monthly payments. A portion of the monthly payment is credited towards the future down payment on the home, while the remainder is collected as monthly rental fees. [*]

Potential homeowners are expected to use the lease period of the rent-to-own contract to improve their chances to qualify for a mortgage at the end of the agreement. This could mean working with credit teams to improve finances and address credit issues. [*]

A successful rent-to-own contract results in the tenant having enough funds for the down payment, getting approved for a mortgage, and purchasing the home at the end of the predetermined time period. [*]

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Learn more about JAAG’s Rent to Home Solution at JAAGPROPERTIES.COM.

To get started, call us at 1-866-JAAG-NOW (that’s 1-866-522-4669).

Have a question? Email us at INFO@JAAGPROPERTIES.COM.