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Serious Buyers Only, Please!

By
Education & Training with ToniHogan.com

Whenever a prospective home buyer hears the words "lease-to-own" or "rent-to-own" the think it's an easy way for someone with bad credit to buy a home. That couldn't be further from the truth. While lease-to-own is an option for those with less than perfect credit, a tenant/buyer must still meet certain qualifying criteria. Remember, the goal is to be able to purchase the home with permanent financing as soon as possible. In Texas, you typically have about 6 months to make this happen under a LTO option.

The tenant/buyer must be willing to commit to the program/plan prescribed by the seller and/or program administrator. The National Housing Benefit Alliance LTO program has implemented the following requirements for LTO candidates:

  1. Begin financial literacy courses.
  2. Prepare budget/spending plan.
  3. Complete other required progam deliverables.
  4. Begin/continue one-on-one counseling.
  5. Have Affordability Assessment completed.
  6. Complete LTO application process.
  7. Find a home and sign the lease.
  8. Enroll in credit management program.
  9. Pay your rent on time.
  10. Improve your credit score.
  11. Become a home owner.

The process is easy for serious buyers. Preparing for home ownership requires commitment and dedication. The NHBA program focuses on long-term ownership and establishing sound financial habits. The goal is to create successful homeowners and decrease the chances of default and foreclosure.

If you are serious about becoming a home owner but need help getting it together, consider a lease-to-own program that has your best interest in mind. The program should be designed to help you create a step-by-step plan to achieve your goal of home ownership.

Are you serious? Then get started on your journey today!

Posted by

 

Toni Hogan®
Agent Success Coach

ToniHogan.com
AgentSuccessMBA.com

Comments (5)

Stephen-Michael Washington
Pre-Approval, First Time Buyer, Fixed Rates - Birmingham, AL
FHA and VA Mortgage Loans Alabama

That's an awesome program. When you do that, the borrower is now invested in the process and will be consistent in getting themselves ready to buy. They have "skin" in the game. So to speak! Great information. It also gives the seller's reassurance that they are not going to waste time with a Lease agreement that might not develop into a purchase.

Mar 16, 2011 10:04 AM
Ilyce Glink
Think Glink Media - Chicago, IL
Best-selling author, award-winning TV/radio host.

Toni, You're right! For homeowners who are considering leasing their home with the option to buy, it's important to check into the renters to make sure that they are the type of serious, committed buyers you're talking about. I have some advice for these homeowners in my post about leasing with the option to buy

Mar 16, 2011 10:24 AM
Toni Hogan
ToniHogan.com - Houston, TX

Stephen, you are correct. The tenant/buyer must prove that they are in it for the long haul. We've had many renters say they wanted to buy soon. They are still renting and haven't taken any steps toward becoming a home owner. As for the seller, we have a few "protections" in place for them as well.

Ilyce, thanks for stopping by. My next post is for sellers. We have a very defined process for the buyer and seller in the LTO transaction.

Mar 16, 2011 06:25 PM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Toni, This some great information for LTO buyers. You are absolutely right about many buyers thinking it's an easy way to purchase a home. I find that many are not truly prepared for Lease to Own.

Mar 17, 2011 02:18 AM
Toni Hogan
ToniHogan.com - Houston, TX

Jerry, it's really amazing how many people are not prepared for buying in general. I think education is the key. It's exciting to get a buyer prospect on the line. Imagine how much more exciting it would be for the first time buyer and agent if we encouraged a pre-purchase course before we started "shopping."

Mar 17, 2011 11:49 AM