Occasionally you will see a Tulsa home for sale advertised with a “lease/purchase” option available. For those unfamiliar with how a lease/purchase can work, here is an explanation.
There are several reasons why a home buyer may need to lease for a short time period before being able to purchase a Tulsa home for sale. The Buyer’s Lender may require a certain period of time on a job before considering that income to be stable. The Buyer may need to clear up a few things to improve their credit score before qualifying to purchase a Tulsa home for sale, or they may need to wait until a bankruptcy is old enough to satisfy a Lender. Or a home buyer may just need more time to save up for a down-payment.
To be an attractive candidate for a lease-purchase, a home Buyer should speak to a LOCAL Lender. The Seller is going to need to know if your income is sufficient to purchase their Tulsa home for sale, and the Seller is going to want the Lender’s opinion of when you will actually be able to complete a sales transaction.
If the Lender says that you need to complete items a, b and c before you can qualify to purchase, and that can be accomplished in a six-month time period, you could be considered a good candidate for a lease/purchase.
A lease/purchase is only going to be attractive to a Seller if the Buyer is going to be able to purchase their Tulsa home for sale in a specific amount of time. Some Sellers may not be willing to wait more than a six-month period while others may allow more time. Each situation needs to be examined individually.
Some things you can do to make your offer more attractive are to make a significant deposit that will be non-refundable should your ability to purchase fall through; yet credited towards a successful purchase. Remember, the Seller is going to discontinue marketing their Tulsa home for sale, so they need to be offered some guarantee that the Buyer will follow through in their ability to qualify for a loan.
Terms need to be negotiated for the lease in addition to negotiating terms for the sale. If all parties remain fair and are considerate of the risks each party is taking, a favorable agreement can be reached.
Buyers, please remember that speaking to a LOCAL Lender is your first step, and here are a few Tulsa Lenders I recommend:
Bank of Oklahoma, Phillip Morrow, 918-488-7147
Spirit Bank, Deidre Robinson, 918-746-7363
F & M Bank, Kyle Bradley, 918-748-7187
Elite Financial Services, Elizabeth Favell, 918-392-3485
A lease/purchase agreement can be a win-win solution to both Tulsa home buyers and sellers. If this doesn’t answer all your questions, please call me: 918-852-5036!