If you are hoping to locate a lease/option on a home in Boca Raton –if your Boca Raton real estate agent is even able to help you to locate one of these exotic and very rare creatures –consider the fact that you will have a limited amount of time to exercise that option.
In most cases of lease/option, an owner will allow a 1-3 year option to purchase the home in Boca Raton. At the start of your lease/option agreement, you will probably be asked for a non-refundable deposit that indicates that you are serious about a future purchase of the Boca home. Be aware that your deposit will be non-refundable.
You will also pay additional rent each month.
Then, you will also be asked to pay additional money above the rental amount each month; these additional funds will be placed in the same non-refundable account to be used as part of your eventual down payment toward your home in Boca.
However, and this is the most important aspect of the lease purchase agreement: at the end of the lease option time on your Boca Raton home, you will need to obtain financing for the house, (a mortgage, for example) unless you have enough cash to purchase in full.
That means right now, before you do anything, before you embark on a lease option, you must be certain that you’ll be able to obtain financing for your Boca home at the end of your option period.
Talk to a mortgage broker, today. Get your credit in order for the future.
You will need to line up a source of future financing.
If you don’t have a way to finance at the time the option must be exercised do that, you will lose all of the funds you have previously deposited.
While you may be able remain as a renter after the option expires, if you and the owner agree to this, the owner would have no obligation to refund any of the money you initially deposited at the beginning of the option or during the rental period.
With that information in hand, if you feel a rent/option program is feasible for you and that you will have sufficient funds on hand at the end of the typical 1-3 year option period, ask your Boca Raton realtor to help you find homes that are currently for rent.
There is a larger possibility that the owners of these homes for rent will be more amenable to a lease/option than homeowners who are trying to sell immediately.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions