Dec 252012
 

Warning SignBefore deciding on whether or not to do a lease option, it is very important to consider the potential risks that you may face as well. In order to offer you full transparency, we would like to discuss the problems that are involved for buyers in a lease option agreement.
Unfortunately, there are people who will decide to move forward with a contract on a home with reasonable terms under the assumption that they will be able to qualify within the 1-3 year period that the agreement has been set to. However, just like fad diets or New Year’s commitments, if you do not change your actions and habits, you will be exactly where you started when the time comes to make your decision to buy.
The downside to this is if you decide to make the down payment and apply credits towards a home that you are unable to buy at the end of the term, you would end up losing that hard earned money. Therefore, we do not recommend for buyers to jump in on a deal until they are fully confident that they have a set plan to improve their credit and save the money necessary to refinance and make the purchase.
The seller is not responsible for assessing your own personal situation. This is something you need to do your homework on and make sure that you are fully comfortable with the terms and the likelihood of being able to buy when the time comes for you to make your decision.