If this is the first home you are going to buy, you need to be very careful. A
Lease Purchase can help you fill in that certain gap, until you are able to offer the full payment for the home. By the time you are about to sign this contract with the seller, you should:
- Already have in mind the resource for the needed money. Most of these contracts expire after 12 or 24 months, and that is not such a long time, especially if we talk about the fact that you need to have a bigger amount available. Therefore, it is always advisable that you talk to several lenders and arrive to a sort of agreement – for example if you are at the moment of the Lease Purchase Agreement tied down by another loan – pay that off respecting the repayment schedule and make sure that in the next year you are going to be able to take another loan on good terms in order to pay your home.
- Very carefully read through the terms and conditions in the agreement. See to it that you have the required money in order to make the down payment (this can start as low as 1% and go up depending on your financial possibilities).
- There are several Lease Option available, so make sure that you choose re best one that suits your personal profile and of course your financial one. Such a Lease Option is very advantageous if you have the security that you can pay off your home before the contract expires.
Lease Purchase Videos
