Currently, renting has become a popular housing option, with the past couple of years seeing big increases in the rental market. While many properties are up for sale in the Cleveland, Tennessee area, many consumers are deciding to rent instead of making the commitment to purchase a home right now. Cheap houses for rent in Cleveland TN abound, which is why this option has become such a prevalent choice. The following are just a few of the big reasons that consumers are going the route of cheap houses for rent in Cleveland TN instead of realizing their dream of home ownership.
Reason #1 – Renting Requires Less Upfront Cash
Rent a home requires a lot less upfront cash than actually purchasing a home, which is no doubt one of the big factors holding consumers back from making a home purchase. Consumers that decide on cheap houses for rent in Cleveland TN only have to pay general upfront costs for renting a home, such as a security deposit and first and last month’s rent. When purchasing a home, the cost of a down payment can be quite steep, especially right now when many lenders require a large percentage of the purchase price down. Many prospective homebuyers don’t have thousands of dollars to put down on a home, which often pushes them towards renting a home.
Reason #2 – Lending Requirements are Currently Tough
Lending requirements are currently very tough, which pushes many consumers to look for cheap houses for rent in Cleveland TN instead of buying a new home. The collapse of the housing market and the economic downturn has made it hard for consumers to acquire a mortgage, since many lenders are a bit leery of lending in the current economy. If homebuyers cannot get a mortgage, it takes many traditional forms of home buying off the table.
The economy has hit many families hard, which has resulted in a low credit score for many consumers trying to recover financially. Since lending is already tough to acquire, it’s almost impossible to find good home mortgages for those with bad credit. Although credit can affect the ability to rent a home, many property owners are willing to rent to those with a low credit score, since it’s such a common problem right now. Consumers with a low credit score often feel that they need more time to get their finances and credit in order before trying to turn a home, which Is why they turn to cheap houses for rent in Cleveland TN instead of pursuing the buying option.
Reason #4 – Fear of Home Depreciation
Many homeowners today are facing upside down mortgages because of the significant home depreciation that has occurred. Some prospective homebuyers fear home depreciation and are afraid to buy right now in case home values continue to plummet.
It’s easy to see why cheap homes for rent in Cleveland TN have become such a prevalent choice today. However, many consumers are unaware of the ability to find rent to own houses in the area. The rent to own option allows prospective homebuyers to enjoy many of the benefits that come along with renting. However, they have the ability to purchase the home at the end of the rental period. This allows potential homebuyers to save up cash for a down payment, raise their credit score and find a good home mortgage. They also have the benefit of locking in today’s prices on the home, which can help them enjoy quick appreciate on the home after the final purchase is made.