Are you thinking of finally making your first real estate investment? If you are, then you’ve probably already realized that there are many ways that you can own real estate. While most people choose to secure real estate through loans with financial institutions, there are some who would rather buy a property through a lease option to buy contract. This particular method of acquiring a home has its own share of advantages. Want to know how exactly it works? Read on to find out more.
The lease option to buy has become quite popular these days, considering that many people have become affected with the recent economic glitch. Since it’s a type of agreement that directly involves the seller and the buyer of a property, there’s no need for you to have a good credit rating in order to prove your financial capabilities. As long as you and the seller both agrees to the stipulations of your contract which will state the price that was agreed upon and the period of time that you will be renting the home, you can then choose to assume ownership completely after that time period lapses. Even though most lease option contracts usually require an amount of money to be held as deposit, you need not worry as that money becomes sort of a down payment for the house if ever you do decide to buy it. Be sure to read the contract thoroughly before you sign anything so that you have a clear idea of the terms that you’ll be bound to.
The lease option purchase can be known as a few different things, so if ever you encounter phrases such as lease purchase, lease option, or to put it in the simplest terms, rent with option to buy. You should know that it practically means one thing. That you’re renting a home that you can possibly own after the lease contract expires. What makes this better than getting a house loan for the bank is the fact that once you’ve signed all the legal documents that are needed, you can then move into your new home whenever you please. There’s no more need to wait for weeks for paperwork to be cleared with the different departments of the financial institutions.
But probably the biggest advantage of them all is that this type of agreement allows the new owner of the home to enjoy much more convenient payment terms than if he or she were to borrow money from the bank. Each month, a part of the rent is put aside in another bank account to cover a bit of the house’s purchase price. So you shouldn’t look at the money you pay as rent as just simply rent anymore because sooner or later, you will be able to really own the place.
So what are you waiting for? Start learning more about lease option to buy today. If it’s been a dream of your to finally own your dream home, then this might just be the answer.
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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