Have you dreamed of owning your own home, but just don’t know how you can manage it? You might have bad credit, little money for a down payment or no credit history at all. Even so, homeownership is within your grasp by using a lease option program.
What is lease option?
Lease option is when you enter an agreement with a landlord that states in the future you have the option to buy that house. You agree on a price when you begin the lease, and if you opt to purchase the house, then you get a mortgage and end renting. If you opt to not buy the house, you move on or continue to rent.
Why is lease option popular?
Lease option will get you into your house fast! You sign a lease like the one you would any other apartment, stating what the rent is, how many pets you can have, etc. With a lease option, you also sign an agreement that says you have a right to buy the home and for what price. The agreement will also state the terms such as how long you have to decide on buying and what the expenses will be for both you and the seller.
The pros of lease option programs:
You can get in to a house immediately. Sign the lease agreements, move in and then work on getting your mortgage.
Work on repairing or building credit while you rent your home. Pay off some bills or establish credit in order to get a better rate on a mortgage.
You can put equity into the house before you even buy it! Even though you are renting, you know the house will belong to you. You can finish off the basement, paint the walls, add landscaping or whatever else you choose. It’s going to be your house!
Save some money. While you are renting, you can set aside money for a down payment for when you do apply for a mortgage. The larger the down payment you have, the less the mortgage amount will be, saving you even more money in the long term.
Investigate the market while you rent. If you are in a seller’s market, you can see if the prices go up or down while you are renting. If they go down, you can opt to not purchase and find another house that may be less. If prices go up, you don’t have to worry because you are locked in at an already determined price.
Know you have options. If while you are renting and a job transfer comes up, know you aren’t obligated to buy the house. You can end your lease, move to another city, and begin another lease option program that can benefit you where you will be living.
Lease option is becoming more popular every year and more people are turning to it because they wouldn’t be able to get into a house as quickly otherwise. Some people who use lease option didn’t even know they could own a home so quickly. Lease option may be a solution for you!