Lease to own home purchases. Wondering if you should buy a lease to own home?
A lease to own purchase can be great as long as you are dealing with the right landlord. I have spoken to several people who did a lease purchase with the home owner who was already under water financially. They ask for a down payment sometimes as much as $30,000! Then they default on their payments to the bank and collect rent from you for months. You won’t even know a thing until the bank tells you that you have to leave the property. Not only losing the home but your down payment. When doing a lease to own home purchase, make sure you have are dealing with a seasoned investor that has experience and plenty of cash flow. If you do put a down payment make sure that you also have a purchase price set in stone in the agreement. If not the seller could refuse your offer and demand more money than you expected to pay.
Also when doing a lease to own purchase make sure that you speak with a professional about your credit, and do credit repair with someone that knows what they are doing. Without investing in fixing your bad credit then you may never be able to purchase the home. Make sure that the seller will allow you to buy the home once you are qualified to, you want to buy the home as soon as possible! Diligently work on putting yourself in position to qualify for a home loan. The longer you wait the more money you waste in monthly payments that go into the sellers pocket, and the higher your rate will be. With interest rates at all time lows, the rates will only go up steadily over the next few years.