Home Buying in Midlothian>Question Details

Allen Gordon, Home Buyer in Midlothian, VA

We are interested in doing a lease purchase!

Asked by Allen Gordon, Midlothian, VA Wed Sep 17, 2008

4 or 5 bedrooms 2 1/2 baths or more in the 23112 zipcode

Help the community by answering this question:


When doing a lease purchase it is very important to pay attention to the following:
1.) make sure you know your credit score. Don't just pull it yourself, have a mortgage broker pull the credit and ask them if they think you would qualify for a regular mortgage or if you need a lease purchase program. If your score is down largely in part because of judgements owed then you should be aware most banks would require you to pay the judgements off and wait (usually 12 months) before they would extend a loan to you.
2.) You should be aware of the sellers terms. Does their timeframe match yours. If you find you need 2 years to do a lease purchase let the seller know up front. Our experience tells us that if a mortgage lender tells you that you need in excess of 1 year for a lease purchase, it is usually to early to do a lease purchase.
3.) Be aware of the penalties. Don't just get into it, know the fine print. Some sellers will take large non refundable deposits. If you don't qualify and you get into a lease purchase, serious problems could occur, you could end up without a home and without yoru deposit! Check out our website http://www.Rent2ownROC.com for even more details to be aware of. Rent2ownroc.com has a ton of resources on this topic to be aware of!
We aren't trying to discurage lease purchases just to make sure you choose the right one!
Web Reference: http://www.rent2ownroc.com
0 votes Thank Flag Link Wed Nov 3, 2010
I am finding many families are doing a lease purchase for various reasons. But you really want to have a long term game plan in place. Meet with a loan officer to go over your credit and help you plan when in the future you would be ready to make a purchase and for how much. You need to know that before you commit to any lease option first. Then you will need to locate a home which you could see yourself in for years to come. Before entering into an agreement with a seller, you should obtain the advice of a real estate lawyer. Lock in a future purchase price , how much of the monthly rent will be applied to the purchase price, and the term of the lease option.
Web Reference: http://www.isblh4u.com
0 votes Thank Flag Link Wed Nov 3, 2010
Dear Allen,

Be sure that when you do a lease purchase that you sincerely intend to purchase that house in the future. Be certain to talk to a lender first and determine what price home you can qualify for so that when the time comes you will be able to close on your new home. Be sure that the reason for your lease purchase is a good one.

Ronnie Schmucker Associate Broker
0 votes Thank Flag Link Wed Sep 17, 2008
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