To be totally upfront, lease purchases are not recommended. This is not just from my experience in real estate, but also from recommendations I received through the many classes and seminars I've taken over the years. Lease purchases place you in an agreement that requires you to purchase the home you are renting after a certain period of time...usually within 1 to 2 years. What happens is that many things can change when it comes time to convert the lease into a purchase. In regard to this, one important thing to keep in mind is when it's time to obtain a mortgage. Interest rates are phenomenal at the moment and actually have been for some time, but there is no guarantee that today's rates will be the same when you're ready to buy. Just a slight increase in the interest rate can possibly reduce your affordability, thus taking you out of the market for homes you qualified for today. If rates stay the same or go further down, you are safe, but it's still a gamble. The other thing to consider when it comes time to applying for a loan (if you are obtaining financing) is your qualifying status at that time. Lenders require you to be in the same line of work for at least two years and to be gainfully employed. Your credit report is also a factor if anything changes in that regard. Also to consider is whether you would still be interested in that home a year later. What if it turns out that you don't like certain things about the home or if you prefer to locate somewhere else?
Keeping all of this in mind is important before you make that decision to contractually obligate yourself in a lease purchase and you need to read and understand the fine print. Many lease purchases are designed that if you elect to not purchase the home, the security deposit will be forfeited. I understand that if a security deposit is all you risk to lose then no biggie, but once again, you need to read the fine print.
It's highly recommended that you have an experienced real estate agent or real estate attorney advise you further. There are other options that could be better for you.
Keller Williams Real Estate-Blue Bell
I think I an help you with a lease purchase in the Plymouth Meeting area
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KELLER WILLIAMS PREFERRED
62 South Main Street
Yardley, Pa. 19057
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