Buying a home is a big deal. Sometimes the effort and time it takes to get approved, search, and buy a home can be the biggest event in a decade for someone’s life. Homes take financing from a third party institution and take a bunch of costs at closing. A nightmare of a situation is to be in a home that one really does not want or cannot afford. For those who are not sure they can get into a home, or would want to own a home, or are afraid of commitment and are not sure if the home payment will crush them. For those who want to buy a home but don’t want to go from not owning to directly owning, there is a option, lease to buy.

The very first thing that must be decided before one can buy a home is if one can afford the home. When a potential buyer goes the lease route, they will put down a lease option security deposit. If the leaser decides to eventually buy the home, then they will be able to use the money for a down payment. The catch is that the lease option deposit can be really inexpensive or really high like up to five percent of the entire cost of the home. If the potential buyer decides to not buy the home, the negative part is that the lease option deposit will not be given back, but will be kept by the owner.

Also the monthly payments made while the home is still under lease will go towards the home payments unless the leaser decides to not buy the home then those payments as well will go to the owner and will not be refunded.

Both the fact that the deposit and the lease payments will not be refunded provide a huge incentive to do ones homework before agreeing to the lease. The point is, one should be really certain that they will be willing to buy the home before the lease is taken out. Make sure that at the time of the lease, the home is a home that one would be interested in and not one that could never be bought, in that case, it is better to just rent a house.

Again, because it is important that the leaser buy a home, then it is important they the leaser has a reasonable knowledge that they will in fact be able to get the financing to buy the home at the end of the leasing contract. On the bright side, if ones credit is almost good enough to buy a home, then if they can do a great job paying back their bills during the time they are leasing the home, it could potentially raise the credit enough to buy the home, and the money paid out while renting the home will be there for a down payment also greatly helping to get a leaser the financing to buy the home.

Lastly, going hand in hand with everything else that has been outlined, make sure, again, make sure that the monthly payments can be made. When leasing, make sure the leasing amounts are not too high, or there could be a chance that the payments will not be made seriously damaging the ability to get financing.

Author Bio: Juhlin Youlien writes about Fountain Hills AZ homes for sale and Paradise Valley AZ homes for sale and other real estate like Gilbert AZ homes for sale.

Category: Real Estate
Keywords: homes for sale, real estate, buying a home, selling a home, loan, mortgage, foreclosurehomes for sal