By
eHow Personal Finance Editor
Difficulty: Moderately Challenging
Step1
Agree with the seller on a purchase price.
Step2
Agree on the term of the lease. This will be the maximum length of time you want the opportunity to exercise your option to buy.
Step3
Determine a market value for your monthly rent. (This is the amount a person would pay to simply rent the property.) Then add $25 to $200 per month to be applied toward the future down payment of the home. (This is not a requirement, but it helps you accumulate money for a down payment.)
Step4
Agree upon terms regarding the exercise of the option, such as the escrow period and financing.
Step5
Determine who will pay for inspections, work and warranties when the time comes to complete the purchase.
Step6
Go to your local Board of Realtors Association or real estate company and purchase a lease-option agreement form.
Step7
Handle the transaction as a lease until you are ready to exercise the option.
Step8
Exercise the option in writing.
Step9
Open escrow or contact a real estate attorney to handle the transaction.
Comments
demoney said
on 4/23/2008 will the lease have to approve from a bank