What does lease option to buy mean? If you’re currently wondering how you will be able to own your first home then this might just be the solution that you’re looking for. The goal of this scheme is to give interested buyers the opportunity to first live in the home for a period of time before they decide to actually transfer the ownership to their name. This is said to be a step up from renting because instead of just paying the rent, you’re actually already paying for your potential dream house even if its only in small increments in the meanwhile. It’s a fantastic idea for first time home owners, especially those who aren’t qualified to take out home loans, judging by the usual specified requirements of most banks.
Whether you have a low credit rating, or you still haven’t saved up enough money yet to put in a downpayment for a place to live, the lease purchase option is a great way to help you get started. By using this option to your advantage, you can already start your journey to owning your very own home. And by the time your lease agreement lapses, which usually after 3 to 5 years, you have most likely already paid for a significant part of it, which has been taken from the monthly rental you have already settled with the owner. And assuming that you have already become financially stable by then, purchasing your home won’t cause any major dents in your pocket.
It’s definitely much better than just renting a place since the tenant/buyer has the power to control their space in terms of fixtures and renovations. Renting can become unbearable, particularly if the person who manages or owns the place you’re renting has set special rules that you need to abide by during your lease term. Technically, if you sign a rent to buy contract with the seller of the property, the house then becomes your responsibility. So if you want to replace something around the house, or if something breaks down and is in need of repair, you can easily do so without having to ask for permission first from the management or the owners of the place that you’re renting. There’s the freedom for you to improve the house, the materials used or the house’s fixtures much more conveniently compared to just renting a house that entails you follow the house rules set by the owner. The important thing is that you follow the terms and conditions that are stated in your lease option purchase contract.
This is your chance to own your first home, without having to fork over a substantial amount to pay for a downpayment or be bothered by high interest rates that banks unfortunately impose on home loans today. There’s a lesser time for waiting as well since this type of transaction has lesser paperwork and processes to deal with. Insecure about your credit history? It’s not a problem because the lease option to buy is targeted specifically towards people who cannot get loans from their banks for some reason or another.
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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