How to get a mortgage on a lease-to-own agreement
People have many options to purchase a home, one of them called Lease To Own. It is a solution for the clients unable to save down payment during a foreseeable time and or have credit issues. In any case, before you enter into any type of rent or lease-to-own agreement, you must contact an experienced mortgage broker. There are many landlords; investors unable to sell their property are resorting to this type of arrangement. Reasons can be, I am not saying for sure; overpriced property, the property needs upgrading, fraud, and so on.
So this is a two-way street. Two parties want to make a deal, however, it has to be fair and you must look at to get the right advice from your trusted adviser, your mortgage broker, to:
• check out ownership and vendor really own the property
• check out the property, what type of liens, caveats are on and they are removable
• check out the price it is not grossly overvalued
• how to get an appraisal to ensure you are not being taken for a ride
• how to make sure to execute the right type of Lease To Own Agreement
• how to properly document the down payment
• properly document the funds paid to the vendor and it will qualify as additional down payment
• the right documents executed the right way to ensure mortgage approval in due time
• reasons to use a reputable law firm will pay off, you can bet on it
Many other hidden agendas can be discovered when you try to obtain a mortgage at the time the Lease To Own Agreement becomes due. We just wanted to make sure, you will not lose all you money what you have put toward the purchase price of the property and you have to start all over. FREE Consultation to avoid possible issues will save you money, time and possibly losing a bundle.
For detailed information on how to structure the Agreement please consult one of our experienced Associate at MortgagePRO Ltd., a Canadian mortgage brokerage that has the answers and will be able to guide you.
We also provide mortgages for people with issues, provide private financing plans, solutions and help to reach your goal; own your dream home.