This process allows you to put a home under a binding contract (cannot be sold to anyone else) and move in before you actually buy it. The benefits of this type of arrangement are great, for example if you had credit issues and need time to work through the problem, or let’s say you have some money coming to you that you want to use as a down payment but need or want to move now before the money comes in, these are both good examples of how Lease Purchase can help you.

 Just as the name implies the Lease Purchase method involves two distinct parts. First is the Lease which is a contract spelling out the amount of monthly rent which will be paid to the owner of the house during the period of time you are living in the house before you legally buy it. This agreement also spells out the terms and conditions of you living there and the period of time you will lease the house before the purchase. Second is the purchase agreement, it is the purchase contract and has all the terms and conditions of the purchase of the home, for example, the sales price. Also included in this document will be the terms of any mortgage required for you to complete the purchase.

 The owner or seller of the home is the one who determines if you are qualified to Lease Purchase their home. So we need to present them with positive information about you. In most cases the owner/seller will want you to provide them with a preapproval letter from a mortgage lender. The purpose of this letter is to assure them that when it is time for you to buy the house you will be ready. We work with lenders that help you work out problems you may have and will even set up a plan to help you qualify for the mortgage.

 As Real Estate agents it is our job to represent you in this transaction. We are paid a fee by the owner/seller who is represented by another agent. Georgia Law requires that we have a written agreement showing we represent you. The agreement is called a Buyer Brokerage agreement and allows us to share all information we find out about the property and to help you negotiate the purchase of the property. The agreement spells out our duties to you and what we expect from you.

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Email: Sjackson@kstrealty.com