4 Reasons Why Your Best Option Could Be to Lease with the Option to Buy

4 Reasons Why Your Best Option Could Be to Lease with the Option to Buy

A Lease with the Option to Buy also referred to as Rent to Own or Lease Option can be a great introduction into homeownership.

1. A Lease with the Option to Buy or Rent to Own gives you time to get to know the community and neighborhood where you'll be living for the next few years.  Have you ever gone to see a movie because everyone else said it was really good and you didn't want to be the only one of your friends not to see it, then when you finally saw the movie you were highly disappointed?  Sometimes that can happen in a home purchase.  You and your agent can find what you think is the best house in the best neighborhood but after living there a year you discover that the traffic from your house to the office is more of a pain then you thought.  Leasing with the Option to Buy will give you time to test drive the house and the community.

2.  Your best option could be to Lease with the Option to Buy if you have information on your credit report to correct, pay off or remove in order to qualify or get the best interest rate for your home loan.  A buyer/tenant doesn't have to give up their dream home simply because they're a couple years away from a sparkling credit rating.  Most lease option purchase agreements are for 1 to 2 years, I've seen them go as long as 5 years.  With the right plan of action, most credit blemishes can be cleared up in less than 2 years.

3.  If your income is holding you back from purchasing , a Lease with the Option to Buy can work for you.  You know you're slated for annual raises on your job and then you can afford the mortgage payments, maintenance and taxes and insurance for your new home.  With the employment market so shaky these days, you may not want to be tied to a 30-year loan for your new home, but when you get into the union you'll feel secure.  You may want to establish stability in your new position before you take on the responsibility of a home.   

4.  What if you buy now and the prices in your neighborhood take another nose dive.  Buyers who are unsure about the home prices would choose a Lease with the Option to Buy so they can bail if prices do go down.

Buyer Beware

If you make the decision not to purchase the home after entering into a Lease With the Option to Buy Agreement you can loose your earnest money deposit.  That's not all, there are sellers who will collect deposits and the monthly payments and then walk away from the home and let it go into foreclosure.  The Buyer does have a claim in this situation, but may have to wait in line behind the list of creditors.  I advise all of my Lease Option clients to counsel with our preferred attorney or seek legal counsel of their own. 

If any one of these situations is true for you then a Lease with the Option to Buy could be Your Best option.   It is a buyers market, call me today for a free financial analysis and get the road map to your dream home.