Recently I spoke with a first time buyer who has some blemishes on her credit report and signed up for a program for a home buying program that advertises rent to own opportunities and says that they will help you improve your credit through this.  I personally don't believe that this is the way to go.   

Rent to own or lease purchase should not be your first option, but repairing your credit is the way to go.    A program that ask you pay them monthly for 6 month and they report that to the credit reporting agencies is not repairing your credit.  This can actually be more harmful, if you want to establish new credit I suggest you obtain a prepaid credit card. 

What exactly is repairing your credit?

To repair your credit you must get a current copy of your credit report and review the credit report to resolve any delinquencies, or inaccuracies.  You must pay accurate bills on time and in addition you must:

• Disputing any inaccurate information on your credit report
• Make payment arrangements for any past due
• Work out settlement for delinquent bills

Only after you have done these things would I say it's okay to enter into a lease purchase arrangement.  I say this because if you enter into a lease purchase agreement you want to want to be in a position to finance this property in your name in the next 6-18 months.  If your credit is blemished during this time you will not be able to do this! 

In my experience lenders want to see that you handle credit responsibly!  This means that you do not over extend yourself and you pay your bills on time.  As a first time homebuyer you don't need perfect credit to qualify for a home loan, but you can not have delinquencies and judgments. 

If you are considering a home purchase in Georgia and would like some help in repairing your credit feel free to contact me!

P.S.  It's important to learn to do this for yourself so you can help someone else.

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