A lease option to buy, or a lease purchase option, is a type of agreement between a seller and a buyer that allows the buyer to rent the property for a period of time with the option that he or she can choose to purchase the said property at the end of the time period provided. It veers away from the common idea that you can only purchase your home through acquiring loans from banks as it mainly caters to people who aren’t qualified to get such loans. If you’re looking to buy a home but unfortunately you just happen to have a bad credit rating, then this is a viable option for you.
The opportunity to own a home easily
As you will be dealing directly with the sellers of the property, there’s no need for you to go through credit investigations just to qualify for a lease purchase option. It’s the sellers who will decide on whether or not you are capable to enter in the contract. And since there aren’t any set standards, you have a higher chance of owning a home through this method than relying on a financial institution to help you with it. It’s directed towards people who, for some reason or another, are not qualified to acquire loans from banks or other lenders.
The possibility for better terms
If there are things on the contract that you’re not happy with, it’s a lot easier to negotiate those terms and conditions with the seller than with a banking institution. If you have any concerns regarding the things that are written on your lease purchase option contract, you can easily approach the seller to reconsider some small details. Just don’t go overboard with your requests though.
No obligation to buy at the end of the contract
A lease purchase option to buy does not in any way impose upon you to purchase the house at the end of the lease period. Its just an option so if ever you decide that the house is not really for you, you can just simply move on to the next. This proves to be quite helpful especially in situations when the market value for the property is declining.
But be warned
Although you’re not obligated to buy the property at the end of the lease period, if you choose to not buy the property, you risk losing quite a lot financially. All payments that you have made towards the purchase of the said property will be forfeited. This is why it’s important that before you consider using this option to buy yourself a house, you should do all the necessary research first. Consult people who know real estate well on whether or not the location and market value of the property is going to turn out as a worth investment in the end.
Now that you know the basics of a lease option to buy, look up other tips and techniques that will be able to help you finally get that dream house.
Author Resource:
Creative Real Estate Services offers home buyers with little cash and poor credit the opportunity for home ownership. Go to http://www.rtocalgary.com
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