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How To Lease a Home with the Option to Buy Illinois

Are you moving to a new town but are unsure if you want to buy or lease? If so, read the following article for information on leasing a home with the option to buy.

Local Companies

James W. Klopfenstein & Associates, Inc.
(309) 673-9111
320 E. Jackson
Peoria, IL

Jameson
312-750-9138
425 West North Avenue
Chicago, IL

Georgetown Common Apartments
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4800 Georgetown Rd
Washington, IL

Evanston Place Apartments
(800) 999-8600
1715 Chicago Avenue
Evanston, IL

Lewis Park Apartments
(800) 999-8600
800 East Grand Ave
Carbondale, IL

Chase Property Management, Inc
(309) 999-5500
219 Fulton St
Peoria, IL

Cohen Development Company
(309) 671-1000
406 S.W. Washington
Peoria, IL

Cullinan Properties, LTD
(309) 999-1700
211 Fulton St., Suite 700
Peoria, IL

Joseph Giddan & Sons
(309) 676-4741
416 Main St
Peoria, IL

Wisdom Development Group, Inc.
(309) 637-0900
405 SW Commercial Street
Peoria, IL

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If you are in the process of making a move to a new town but are unsure if you want to buy or lease there may be a middle of the road approach for you to take: That is, "Leasing with an option to buy."

Lease with an option: What is it? This arrangement means that you are renting a unit with the option to purchase it at a future date. The price of the property is set when the lease-option is signed by both parties. A down payment of some amount is typically collected by the lessor for good faith. Monthly payments will sometimes be higher than the regular rent. The excess amount can be applied to the purchase price or is considered payment for the "right" or "option" to buy.
"Assignable" vs. "Non-Assignable." Assignable lease-options mean that the lessee can offer another person the opportunity to buy the property at the set purchase price. Smart sellers with put in a "Non-Assignable" clause to ensure that if the market goes up and the lessee is still not in a position to buy the house, that she cannot sell it to a third party for a nice sum.
Pros for Lessees: Lessees who secure a lease-option in an improving market may find the value of the house they are buying is significantly greater than the purchase price (fixed at the time of the lease signing).
Cons for Lessee: There is a degree of risk for lessees seeking the lease-option. People seeking this arrangement typically do so because they cannot qualify for a home loan. If the portfolio of a person in a lease-option does not improve to the point where she can qualify for a loan when the option to purchase date arrives, she will lose any option money that has been shelled out. If you are exploring the lease-option arrangement be sure that your credit, savings, debt, and employment stats will be able to get you a loan for the purchase when the time comes. Just because you have a lease-option does not secure your ability to obtain a loan for the property. The seller will still demand a mortgage commitment. Another risk for the lessee is a failing market. If the market sees a decrease, the lessee does not have to purchase the property, however, her option money will be forfeited.

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Author: Grace Bloodwell

Featured Local Company

James W. Klopfenstein & Associates, Inc.

3096739111
320 E. Jackson
Peoria, IL

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Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History