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A Lease Option - Another Purchase Option

A lease-option is a property lease for a fixed time period, such as 12 or 24 months, with an option, not an obligation, to buy the property at an agreed option price during the lease term. Here are a few of the advantages to the buyer:

The up-front cash required to buy a home or other property on a lease option is usually small. This option money is in lieu of a security deposit.
A portion of the monthly lease payment goes toward building your down payment.
You are able to profit from the market value appreciation of the property.
You are already building equity! Remember you agreed to a fixed purchase price not the market price that the property will be worth at the end of the option period.
If necessary you have time to repair your credit while you have locked-in a purchase price.
There's time to check out all of the home's features and faults, the neighborhood, schools, shopping, health care facilities, etc.
You skip paying the closing costs associated with conventional mortgages.
When you lease a property you are not responsible for the property taxes or homeowners insurance. Those won't be your worry until you become the owner of the property.

While the benefits of a lease option are not one sided they definitely give many first-time buyers or those with past credit problems an ideal way to get started on home ownership

Posted by Lynnette Phillips - Loan Officer/Realtor Consultant on 12/13/2007 03:11 PM

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Loan Officer: Lynnette Phillips - Loan Officer/Realtor Consultant (Home Pride Mortgage)

Lynnette Phillips - Loan Officer/Realtor Consultant
Yucaipa, CA
More about me…
Home Pride Mortgage

Cell Phone: (909) 327-8600
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**The Posts and Comments contained in this blog are not intended as legal advice.**

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