Prepare Immediately For Lease Option Success!
February 14th, 2012 | 
Author: Prepare Immediately For Lease Option Success!
In todays tightening lending environment you may be like many people who are unable to qualify for a home loan. Still your family deserves a home they can call their own.
You may be considering a Rent to Own Lease Purchase Lease Option and Owner Financing transaction as a viable alternative to conventional financing.
While this can be a great option for those who are serious about buying a home a Lease Purchase transaction is a financial disaster if you dont do what it takes to qualify for a mortgage by the end of your option term.
A good credit score is essential to your loan approval. Unlike a few years back in todays economy good income and a down payment wont overcome bad credit!
It is important to begin working to improve your credit score as soon as you decide to Rent to Own a home. The first step is to pay off any current collections and pay down your credit cards.
Ideally you want to have at least four credit cards that arent near their limit. The reason for this is that a component of your credit score is the percentage of revolving credit that you have available. This means that your score will be higher if you owe 500 and have 10000 available than if you owe 500 and only have 2000 available.
- The credit bureaus see these loans as a sign of financial troubles.
While focusing on your credit is the first step that isnt all you need to do. What other factors will come into play when it comes time to apply for a home loan?
Income is of course very important. Ideally you want two years with the same employer or at the very least in the same field. Job changes are fine if you are advancing in the same field but should otherwise be avoided.
Historically a large number of selfemployed individuals sought out stated income mortgages. As these loans are no longer available many are electing to do Lease Option transactions for two years to give them the time to document their income. It is important to do what it takes from the beginning of the lease term so that the required documentation will be in order when the time comes. Most every lender will require at least two years of documented income.
Beyond credit and income there are other things that can play into a loan approval. While once those who were not US citizens could qualify for a mortgage without much trouble this has become significantly more difficult. Noncitizens should be prepared to have established credit files and significant cash down. Even then approval is not a sure thing.
By actively working on credit repair and paying attention to other factors that will impact your chances of mortgage approval you can quickly be on your way to becoming a Lease Purchase success story!
About the writer:nbsp;nbsp;Wendy Polisi is VicePresident and CoFounder of Finance the Dream America’s Premier Lease Purchase Lease Option Rent to Own and Owner Finance Program. Finance the Dream offers the opportunity of homeownership to those with less than perfect credit. Their unique program offers credit reporting and credit repair. For more information on their program please visit http://www.financethedream.com
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