Benefits of Lease-Purchase Deals for Mortgages
A Lease-Purchase for Home Buyers is a great way to find much more time to look around for a mortgage. Time allows a Buyer to obtain funds at conditions that any rushed search and application will not allow. For example, credit scores can be improved before applying. Unfortunately the hard deadlines typical of a conventional sale, must be observed because after an offer is accepted contingent on finding the financing, the sale is in pending status. Because of the contingency on securing the funds, the Seller is stuck while the Buyer is trying to get an acceptable loan/mortgage. With all the problems and challenges of any mortgage application in a difficult world like the mortgage industry today, it can take weeks, even with a pre approval, often months.
Buyers face the prospect of not being able to close the deal that they wanted before the agreed deadline and have to find another home instead.
In an even more precarious position is home seller if the deal can’t be financed in time or at all, because the longer a property stays on the market and the bigger the challenge to sell now becomes. It’s pretty easy in times of readily available information that a “pending sale” u-turned into a “back on the market”, which causes the fair market value of the home for sale to be badly affected. It becomes so easy to lose sale after sale as the effect balloons as the listing goes stale.
Screening Buyers and negotiating only pre approved ones,or demanding proof of available funds, or setting deadlines and various conditions to reduce risks, is what many Sellers resort to, the unwanted consequence is to greatly reduce the number of Buyers that are able to close the deal; the number of days on the market also makes the listed house less attractive to many Buyers, if not most, while attracting low-ballers who go after longtime Sellers who are deemed desperate.
Selling via Lease-Purchase increases exponentially the amount of interest and tends to sell much more quickly, while deals rarely fall through and home sellers can move on.
The house for sale becomes a lot more appealing to Buyers in the right market, which is where they are motivated to buy, most of which in need of time to qualify for a mortgage. By bringing the property to a Sellers market, the property increases its Fair Market Value and sells more quickly.
Ask us the details of how the process works and how deals are done, both to Sell a house or to Buy a house, as we can present a number of options to Sell and to Buy Real Estate, depending on the situation of individual Sellers and Buyers.
The ability to design the right type of deal for each Home Seller and for each Buyer is what makes us different!
Rapid Home Acquisition and Delayed Balance Sales Specialists in New England