Leasing to own is a brilliant situation for an actually large class of people. The kind of genre of people that would benefit most from getting into a lease to own situation are those who do not own a house yet, are still building their credit, and are not sure they will be able to really handle the responsibility of owning a home and want to test the waters still having the option to back out at the last second.

When a potential buyer decides to do a lease to own option, they will do a lease non refundable deposit that is only redeemable for a down payment at the time of purchase, they will make monthly payments that will go towards the house payment, unless they do not buy, and the best part of it is that the buying price will be set. Since historically homes have risen in prices with only a few exceptions, setting the homes price is a great move because the actual resale home price will probably increase in value but the pre-decided fixed cost will still hold. On the other side, if the actual price of the home decreases, then the potential home buyer can walk away and not have to sign into a horrible contract that will leave them under water as far as appreciation is concerned.

Because the lease to rent buyer has already set the price of the home, it is in the buyer’s best interest to fix up the home and increase its value even more. This is because when the bank sends an appraiser to appraise the home, the buyer will want the appraiser to appraise the value of the home as high as possible making it more likely that the buyer will qualify for the loan and get the financing to actually buy the home. Also, with a high appraisal value, the home buyer can turn around and well the home quicker and more likely at a higher price than they bought if for.

As the due date for the leaser to actually buy the home approaches, it is critical that the home buyer get the financing available beforehand. The buyer does not want to miss the deadline to buy the home and lose all the equity they have built up already in the home. Getting the financing ahead of time or six weeks ahead will ensure that the arrangement to buy the home will actually be good and things will go through. If the financing cannot be found with one particular bank, if one starts far enough ahead, they might be able to find the financing through some other form of financing.

Finally, exercising the option to buy the home, after the financing is arranged, will almost certainly lead to the home closing. It is very important that the home closes in a reasonable time frame, as too long a waiting period is not good. Most likely, the buyer will feel a small change as the home passes from leased to owned. Feelings of independence and security making buying the home a great option and make the transition from leasing to buying extremely rewarding.

Author Bio: Juhlin Youlien writes about Paradise Valley AZ homes and Fountain Hills Real Estateand Fountain Hills AZ Homes for Sale and other real estate like Gilbert Real Estate.

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