If you are struggling to come up with a down payment or a high enough credit score that will enable you to get the home loan that you have been hoping for, there may be another option. Leasing or leasing-to-own a home may be the solution that you have been searching for. If you are not familiar with leasing or lease-to-own programs, you may feel uncertain and apprehensive about the idea. A lease-to-own option is not for everyone. It is important to know the pros and cons of leasing a home with the option to buy. It is also imperative that you are working with a real estate agent or real estate lawyer such as Lees Leasing Company LLC, who can make sure that your lease is fair and square and that each party can benefit for the lease-to-own option.
Favoring Both Parties
When you are doing your research, you may hear that a lease-to-own option always favors the seller. This is not really true. Both the buyer and the seller can benefit from a lease option under the right circumstances. For example, imagine that you have found the perfect home, but your credit score is not quite up to snuff, or you need several thousand more dollars for the down payment. You can have your agent talk to the homeowner and see if they would be interested and willing to enter into a lease to own option with you. You would both agree on a set monthly payment that you would make to the homeowner. A portion of that amount (predetermined by you and the seller) would go into a separate account and would count toward your down payment at the end of the lease option. The homeowner would be able to continue to make the loan payment every month and you would be in the home of your dreams with the breathing room you need until you can get a home loan.
Thinking Outside the Box
A lease-option is typically 1 to 3 years long. As the lessee, you would have the option to buy the home either at the end of the lease or before. Another great benefit of leasing is that you can agree on a purchase price at the time of the lease. That way neither party will have any problem with housing market fluctuations. The current market conditions of the area that you are looking for a home will determine the likelihood of finding a homeowner who is willing to enter into a lease-to-own option with you. If the market is slow, homes will be on the market for several months and will make it more likely that a homeowner would be willing to consider some other options outside of a traditional buy/sell arrangement.
It is important to note that most homeowners will feel more secure, confident, and willing to enter into a lease option with you, if you are represented by a professional agent or company such as Lees Leasing Company LLC. By using a professional who knows the ins and outs of leasing a home with the option to buy, both parties will be protected while achieving their goals in the long run.