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Well, it's important to know that at the end of a lease contract, so, say, for example, you get a three year lease. At the end of that three years, you need to be able to qualify to buy that home. Otherwise, what's the point? You still need a mortgage. You're still having to go to a regular mortgage lender, whether that be a bank or a non bank.
So, it's important to know that there's certain factors. If those factors that are holding you back from getting a home now, those factors are not going to change three years from now, you're still going to be encountering the same problem.
So let me go through the five criteria that a lender looks at when you're looking to buy a home today because it's going to be the same criteria that they're looking for later on. And then, I'll go through which one of those criteria you can have missing right now that can get fixed so that in three year or two year's time, you can, in fact, buy your lease to own property.
The five criteria that banks look at is, obviously, your income. They want to make sure you can pay the bills. They're also going to want to know what debts you have; so what's already cutting out from your income. They want to know about down payment. Where is that coming from? Is that your own money? Is that savings?
Is that a loan because that's going to impact things as basically another debt. They're going to want to know about your credit, and then lastly they're going to want to know about the property. OK.
Those are the five factors. Now, what factors can obviously change? Well, when it comes to the property, that's something where it's going to obviously be a case by case situation. And obviously, the house that you go to buy, you're going to want to make sure it's a fairly safe house.
You don't want to be dealing with anything too risky because if policy changes on something where, for example, it has now into interior parts of the home, or if it's a previous roll offer, something like that. You just want to keep it simple. You want to get a home that doesn't have any weird quirks. OK?
But other than that, the other four things that are in your control and have to do with you personally that probably has prevented you from getting a home.
So, the first one is credit. Credit is one of those things where if you have bad credit, you declared bankruptcy, or you've got a bad track record or you're young and nobody told you about credit, so, therefore, it got a little smashed up.
With credit, with the exception of some things where it takes 30 to 60 days to cure it, there's no real middle ground. Either your credit takes 30 to 60 days to correct because it's something minor and it's just going to boost your score up a bit, or if your credit is really bad, time is the only thing that will heal.
So, because of that, lease to own would be a great option for you if you just need time on your side to correct your credit. If it was a bankruptcy, let's get you with a secured credit card, let's start building your credit back up.
And you know what, in three years you should be fine to buy that home as long as you followed all the steps that I would lay out for you, what you need to do to fix your credit. OK? If you are a candidate with bad credit, you're perfect for lease to own.
If you don't have enough down what is this? This is the down payment finger. If you don't have enough down payment, lease to own could be good for you.
For many of you, especially if you have kids, maybe, you have two and a half, three kids and you can only afford ... you can qualify for a home ... but the problem you can only qualify for, maybe, $200, 000 or $300, 000 simply because you don't have enough down payment to buy a $500, 000 home which would be ideal because you'd have enough rooms for all your kids.
This is also a great situation. With lease to own, typically, some of them will say you can do zero down, but I don't want to encourage that. I do encourage having, at least, three percent. With lease to own, especially the people that I work with, you only require three percent. Of course, you can give them five percent which is also great, but if you don't have five percent then this can be a great option and lease to own would be a good option for you if you're needing a home outside your means.
This is the debt finger. So, what is your debt? Again, sometimes time is the only thing that will heal debt. Maybe, you've got massive student loans. Maybe, you've got a huge car loan because nobody told you to get the house before the car. The car's always easier to get a loan on than the house is. Once you get that $500 a month car payment, it's really hard to get your mortgage payment, depending on what you make.
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How Do I Get Renovation Money for My Home?by MortgagesInVancouver542 views
very good info. and u are very attractive.
shawnbfromjersey 7 months ago