Build ownership in a home while you rent/lease it.
Easy credit approval, even with previous financial difficulty or bankruptcy.
Home ownership for self-employed individuals, despite business debt.
Live in your new home even though your previous home is not yet sold.
Flexible Lease-To-Own terms from 12 months to 36 months.
Simplified home mortgage financing at end of lease term.
Fixed purchase price of the home at inception of lease.
Minimal "purchase option fee" (down payment) compared to a traditional home purchase, which could require 10%-20% or more of the purchase price as a down payment.
No obligation to purchase in the event your situation changes.
Wednesday, October 25, 2006
Tuesday, October 24, 2006
What happens next
Step 1: Locating your Home
Upon locating a home that meets your needs, you enter into a Lease-To-Own arrangement, which comprises a Standard Lease Agreement and also an Option To Purchase Agreement.
The Standard Lease Agreement is typical of any residential rental arrangement; however the Option To Purchase Agreement secures you the right to purchase the home at a future date and at a pre-determined price.
Rental/Lease Period
The Rental/Lease period is arranged for a period of time, usually up to 12 to 36 months, which may vary depending on how much time is required for you to be approved for your mortgage.
Step 2: The Mortgage Approval
Prior to the Purchase date, a Mortgage Specialist will work with you through our 'Do You Qualify Program'. This process walks you through the mortgage application and approval.
At the end of the defined lease term (12 to 36 months), you obtain financing to purchase the home. Since your option fee and any additional monthly amounts paid have built your equity in the home during the lease term, and you have been living in the home for the past year (or two years, etc.), and assuming your monthly lease payment history is good, and your other credit obligations have been corrected or maintained in good standing, the lendor will be more receptive to providing you a mortgage. Essentially, your credit management and lease-to-own arrangement present you as a better credit risk to lenders. In addition, no additional down payment may be required when you purchase the home because of the equity you have already established, compared to the value of the home.
Step 3: The Purchase Date
The “Lease Option” is your right to purchase the home on (or perhaps before) the agreed upon Purchase Date. As long as you hold this “Option” agreement, the home cannot be sold to another person without your consent.
The Purchase Date is your Closing Date. This is the day you officially take possession of the home.
What is Required?
To get you in the door of your new home, the following would be required:
Find your home
To set up a Rental/Lease agreement, initially you will need to provide the 1st and last Month’s Rent/lease.
This rent/lease amount covers the standard housing expenses. Depending on the type of property, utilities would be separate.
A Down Payment(earnest deposit):
This is usually 2 or 3% of the purchase price of the home. Usually $10,000 +, however arrangements could be made with as little as $5000!
Verification of Income:
A job letter and proof of income (recent pay stub, T4 or Notice of Assessment)
After you have moved and settled into your new home, a Mortgage Specialist will contact you to arrange your 'Do You Qualify' Mortgage Consultation. During the consultation, the Mortgage Specialist will advise you of any additional information that will be required for a successful mortgage approval and closing date.
The Standard Lease Agreement and the Option To Purchase Agreement are fulfilled and terminated when you purchase the home.
You now own the home!
Upon locating a home that meets your needs, you enter into a Lease-To-Own arrangement, which comprises a Standard Lease Agreement and also an Option To Purchase Agreement.
The Standard Lease Agreement is typical of any residential rental arrangement; however the Option To Purchase Agreement secures you the right to purchase the home at a future date and at a pre-determined price.
Rental/Lease Period
The Rental/Lease period is arranged for a period of time, usually up to 12 to 36 months, which may vary depending on how much time is required for you to be approved for your mortgage.
Step 2: The Mortgage Approval
Prior to the Purchase date, a Mortgage Specialist will work with you through our 'Do You Qualify Program'. This process walks you through the mortgage application and approval.
At the end of the defined lease term (12 to 36 months), you obtain financing to purchase the home. Since your option fee and any additional monthly amounts paid have built your equity in the home during the lease term, and you have been living in the home for the past year (or two years, etc.), and assuming your monthly lease payment history is good, and your other credit obligations have been corrected or maintained in good standing, the lendor will be more receptive to providing you a mortgage. Essentially, your credit management and lease-to-own arrangement present you as a better credit risk to lenders. In addition, no additional down payment may be required when you purchase the home because of the equity you have already established, compared to the value of the home.
Step 3: The Purchase Date
The “Lease Option” is your right to purchase the home on (or perhaps before) the agreed upon Purchase Date. As long as you hold this “Option” agreement, the home cannot be sold to another person without your consent.
The Purchase Date is your Closing Date. This is the day you officially take possession of the home.
What is Required?
To get you in the door of your new home, the following would be required:
Find your home
To set up a Rental/Lease agreement, initially you will need to provide the 1st and last Month’s Rent/lease.
This rent/lease amount covers the standard housing expenses. Depending on the type of property, utilities would be separate.
A Down Payment(earnest deposit):
This is usually 2 or 3% of the purchase price of the home. Usually $10,000 +, however arrangements could be made with as little as $5000!
Verification of Income:
A job letter and proof of income (recent pay stub, T4 or Notice of Assessment)
After you have moved and settled into your new home, a Mortgage Specialist will contact you to arrange your 'Do You Qualify' Mortgage Consultation. During the consultation, the Mortgage Specialist will advise you of any additional information that will be required for a successful mortgage approval and closing date.
The Standard Lease Agreement and the Option To Purchase Agreement are fulfilled and terminated when you purchase the home.
You now own the home!
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