There are many renters looking to buy their first home and trying to do lease purchase options. I have recently received emails from a few peopel looking for such opportunities.
Here are the steps you would take if you are considering lease options.
1. Sit down with a trusted loan officer who can advice you about loan programs, your credit scores and the amount of cash you will need, and how to straighten out the credit if need be and how to improve your score.
If it looks like you will be able to change the circumstances in a year or two then you can consider lease purchase option.
2.You can work with a buyer's agent who will help you find a house which the owner is thinking of renting for a year or two and will sell it to you at that time.
The problem here is there are very few homes with lease purchase options and sometimes the owner asks for option money which will be used for a down payment when you buy , but if you do not buy, you may have to lose some of it. You need to talk to an attorney who will write the agreement so you are protected. The owner may also apply part of the rent towards down payment. But the agreement should be looked at by an attorney as it should be acceptable to a mortgage company.
The owner and tenant agree on a sale price and both are taking a chance. If the prices go up the buyer has benefited and if the prices go down, it may not appraise and you may not be able to buy.
Yes there are advantages and disadvantages but the first step is seeing if you can qualify this year itself when the rates are low and prices are low and looking at all the homes available without restricting your self to homes that are available for lease purchase.
If you munst wait, make sure you know how you are going to change the circumstances that are preventing you from buying this year by talking to a loan officer.
When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.
Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com
She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email email@example.com
If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491
Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others in my post and comments is not to be construed to be legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.