Lease Options: Why buy when you can rent!

Written by Syd Johnson


A lease option agreement gives yourepparttar right to take possession of a property and then buy it later on. This is an alternative financing arrangement because you take possession of a home but you don’t actually ownrepparttar 112100 home. The seller, in this caserepparttar 112101 homeowner, has an obligation to sellrepparttar 112102 property to you at a predetermined date, but you are not obligated to buy.

Who would benefit from a lease option? A lease option is a great deal if you’re a renter but you don’t want to live in an apartment, looking to buy a home but need some time to clean up your credit or you want to buy a home but need time to come up with a sufficient down payment.

You can earn rental income One you sign your lease option agreement and take possession ofrepparttar 112103 home, you can also rent it out or sublease it to another tenant and make a profit offrepparttar 112104 rental income. In this case, you would have to charge a rental rate far aboverepparttar 112105 rate you are paying torepparttar 112106 legal homeowner to make a profit.

If you decide to gotrepparttar 112107 rental route, be aware that you are in fact becoming a landlord. Do a quick search online or check withrepparttar 112108 local housing authorities in your city to find out your rights and obligations, and also how to structure your rental agreements before you start looking for prospective renters.

Low Down Payments The down payment required to enter a lease option agreement is usually less than, but not greater thanrepparttar 112109 amount required on any other type of rental property in your market. That means that you can take possession of a home for as little as one month’s deposit.

Get Approved: Mortgage Application Tips

Written by Syd Johnson


Take time to completerepparttar application Get a comfortable table or desk and spendrepparttar 112099 time to fill out your mortgage application neatly and correctly. This is notrepparttar 112100 time to be multitasking.

If you are given a paper application atrepparttar 112101 bank or credit union, ask to bring it home and completerepparttar 112102 application when are you not pressured, and have all of your documents handy. If you are doing it online, use extra caution, watching out for mistypes, misspellings and make sure that you putrepparttar 112103 correct info intorepparttar 112104 correct form fields.

One way to smoothly go throughrepparttar 112105 mortgage application process is to create your own application package approximately one year and no later than six months prior to applying for a home loan. Gather all of your information, check your credit report and that way you can be aware of any surprises before you speak to a lender. Here are some ofrepparttar 112106 things you should prepare during this period:

List of debts Make sure you know exactly how much you owe and to whomrepparttar 112107 money is owed. If you are married or you are purchasingrepparttar 112108 home with a partner, help of a parent or some other second party, everyone should be aware ofrepparttar 112109 total sum of all individual and joint debts.

Gather your documents for auto loans, school loans, personal loans, other mortgage payments, alimony payments, child support payments, credit cards and any other type outstanding debt. Create a master list with all ofrepparttar 112110 items, account numbers, addresses, amounts owned, interest rates and monthly payments.

If you can pay off a significant portion of any one medium to large debt perhaps you should consider waiting an additional year before applying forrepparttar 112111 loan.

Recent addresses If you have moved recently or have been upwardly mobile for a while, it can be difficult to remember allrepparttar 112112 addresses, apartment numbers and cities where you lived. Your address history should also be on your credit report, but you need something else such as old statements or information from your address book to make sure that your credit report is accurate.

Credit Report Get a copy of your credit report from all three credit bureaus. Checkrepparttar 112113 information from each report against your records and also against each other. Sometimes when an outstanding debt has been paid or settled,repparttar 112114 information might be sent to only one bureau or not at all. Call your lender and ask if and when they information will be provided torepparttar 112115 credit bureau.

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