Lease to Own (Option)
Updated: May 4, 2018
Another one of my biggest requests I get (along with foreclosure properties) is lease with option to purchase, also known as "lease to own." The misunderstood belief that this transaction allows a person to lease/rent a home until their credit or finances permit them to purchase the home they are renting. In Texas, we (as agents) aren't able to work these transactions without an attorney being involved. In entering this agreement, there are too many undisclosed variables to cover, most of which do not protect the tenant/buyer. Because of this, it is highly recommended that one consider to either rent or purchase. If you're not sure, consider which your do prefer. From experience, I've learned that most people prefer to purchase, which is why they are looking into the lease with option. Since this may be the case, I would recommend one of two things: 1. Speaking with a trusted realtor to break down the pros and cons of not only renting vs buying, but also the process and what to expect to proceed with either. 2. Contact a reputable mortgage lender to pre approve you for a home loan. Most people are more ready than think they think and this process can help you close the gap to reach your goal of home ownership.
As you can see, lease with an option may not be a feasible option that benefits you the most. Remember to reach out to a realtor and lender to help you find out which is the best decision to make based on where you are at this particular moment.