LEASE PURCHASE - THINK IT THROUGH!

If you are considering buying a home with a lease purchase you really need to listen to someone that has a lot of experience.  So, listen now and hear me later:  in a lease purchase situation you don’t own it until the deed is in your name – when the final payment is made to the owner, whether with a mortgage loan in six months or cash at the end of the contract term.  Paying a monthly lease to an owner doesn’t show positively on your credit score if that’s what you’re trying to repair.  You certainly don’t own anything and you cannot take out an equity line of credit on a home you don’t own, you don’t get the tax deduction, and any expenditures you make in upgrades will simply become the owner’s property.   People with borderline credit issues or those in limbo till that big commission or raise comes through shouldn’t be so anxious to get into something they can’t get out of later.  In our instant gratification society, you have to exercise patience, not get so emotional over a purchase of anything never mind your biggest purchase ever and get down to getting your credit score up so you’ll have some financial muscle and can negotiate a great deal on a home in what may be a few short months.  Don’t be the proverbial kid walking down the hall with the “Kick Me” sign on your back.  Unlike “Retired Realtor” who would suggest that get you into a lease purchase where he got paid up front, I’d rather you wait and get a good deal for you and your family.

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