What is a Lease Purchase Option for Homes in San Antonio, TX?
Let’s imagine the situation that your credit is not so high today. That means that you’ll find it difficult to apply for a loan and buy your dream home. However, you shouldn’t get into despair. A solution exists! Keep in mind that you can still take advantage of a lease purchase option. First of all, you need to find a lease-to-buy home. Then, you have to make a deal with a landlord. After that, you’ll have to pay for rent for a certain period of time. By doing so, you’ll be able to pay off your debt. That’s it. Finally, a lease-to-buy house will become your property. In this blog, we’ll tell you everything you need to know about a lease purchase option for homes.
What is a Lease Purchase Option for Home?
It’s crucial for you to get an understanding of what a lease purchase is. Actually, it’s the type of an agreement that can be reached between you (a tenant) and homeowner (a landlord). A tenant and a landlord have to negotiate all of terms before to reach an agreement. If you purchase a lease-to-buy home you’ll have to pay rent as a tenant. As a result, the part of rent goes toward down payment and the part of rent goes to a landlord. The portion of rents that goes towards down payment is usually discussed between a tenant and a landlord ahead of time. However, the most important thing is that a lease purchase option gives you an opportunity to buy a home. Another big advantage is that a lease purchase option positively affects home buyer’s credit.
Benefits of a Lease Purchase for Tenant Buyers
People choose to take advantage of a lease purchase option for a number of reasons. It’s worth noting that purchasing a lease-to-buy home delivers multiple important benefits to tenant buyers. Below, we’ll explain to you how you can benefit from a lease purchase option.
– If you have had credit problems then you’ll hardly be able to qualify for a traditional mortgage. However, you can use a lease purchase option as an alternative to traditional mortgage.
– Oftentimes, people can’t save up the necessary amount of money to purchase a house. However, a lease purchase can be an effective solution for these kinds of problems. A lease purchase gives home buyers time to save up a down payment. All that you have to do is to pay your rent. The more time you live in your house and pay rent – the better chances you have to own your property. Finally, you’ll be able to pay the purchase price and get rid of debt.
– Sometimes, a lease purchase even allows home buyers to get their properties repaired and improved. When this type of deal is made, home repair costs are usually added to the rent price. So, after you pay off your debt you’ll get a repaired and improved house.
How to Purchase a House Using a Lease Option
You’ve decided to buy a home through a lease purchase. The big question is – what’s next? Actually, a lease purchase consists of several stages such as finding a lease-to-buy home, analyzing the home, making a deal with a landlord as well as buying a home. Now, we’ll give you more details on each of these stages. Check out our tips on how to use a lease option for purchasing a house.
Finding a lease-to-buy home. First and foremost, you need to find a landlord who would like to sell a lease-to-buy house.
Actually, there are many websites where you can consider lease-to-buy homes for sale available in your area. That means that you can always take advantage of online search to find a lease-to-buy home. Visiting such sites may help you find lease-to-buy homes available for sale in your neighborhood.
Let’s imagine the situation that you have found a good home, but you don’t have enough money to buy property today and your credit problems don’t allow you to take advantage of mortgage. In this case, it makes sense for you to ask a home seller about a lease-to-own agreement.
If all of your attempts to find a lease-to-buy home haven’t been crowned with success you can always ask real estate agents for help. Realtors would be able to recommend you lease-to-own homes available for sale in your area. However, using realtor’s services has its own drawbacks. If you ask a real estate agent for help you’ll have to pay realtor’s fees.
You can also ask real estate investors about lease-to-buy properties. Oftentimes, real estate investors purchase properties and then sell them using a lease option.
Analyzing the home. After you find a good lease-to-own home, the next important thing you need to do is to analyze the property carefully. It’s important for you to figure out why a home owner has decided to sell his/her property. Then, you need to inspect a house carefully. By doing so, you’ll be able to find structural defects and other types of hidden problems. It’s important to point out that inspection is a serious job. So, if you don’t have experience in inspecting homes then it would be better for you to hire an inspector.
Negotiating a contract with a landlord. Have you already found a lease-to-buy house of your dream? Now, it’s time to negotiate a contract with a landlord (homeowner). When negotiating a contract with a landlord you need to pay a close attention to such important things as the purchase price, monthly rent and the length of your lease. Check everything carefully prior to signing a lease-to-buy contract.
Purchasing a lease-to-buy home. After an agreement between a tenant and landlord is reached the process of purchasing a lease-to-buy home begins. Now, a tenant’s job is to pay rent on time. Do everything you can to avoid missed monthly rent payments. Sooner or later, lease period ends. So, you’ll be able to get rid of debt and own your dream house.
Interested in purchasing a lease-to-buy home in Texas? Contact Anchored Sunshine, LLC today to discuss all of lease options available in your area!