Q: How do lease options work and what are the benefits?

A: Most lease-option agreements specify that a portion of the rent on the property in question is applied toward the purchase if the option is exercised. This is referred to as rent credit. Institutional lenders accept rent credits as part of the down payment if rental payments exceed the market rent and if a valid lease-purchase agreement is in effect, a copy of which must be attached to the loan application.
For sellers, lease options give them several advantages, especially in a slow market. These include a monthly rent higher than market rent, top-market value for the property and tax-free use of the option consideration until the option expires or is exercised. Also, the renter is more likely to treat the property like an owner, tax-free use of option consideration until the option expires or is exercised.
Lease-options should be read carefully for details on transferring the option and other important concerns.

Visit Daniel Bozza at www.callmehome.com for more info

Get prequalified, or get preapproved?

If you’re considering the purchase of a new home, you may be concerned with the issue of finance. Attaining the right mortgage is a key step in the home buying process, but it doesn’t have to be a stress-inducing one. Most lenders offer prequalification, pre-approval or both to help you know where you stand. Let me explain the difference between prequalification and preapproval:

Prequalification: Prequalification is a preliminary estimate of how much you can afford to pay for a home based on information you provide. Because credit and employment information aren’t validated for prequalification, it can only be considered a rough idea of a monthly mortgage payment and loan size. This can be a useful guide as you begin the home buying process, however.

Preapproval: Preapproval is a written commitment from a lender to finance your home purchase up to a set amount. This indicates that the lender has taken a close look into your financial history and has agreed to lend you a specific amount of money, reliant on certain details like a finalized sales contract and professional inspection. Pre-approval indicates to sellers that you are a serious homebuyer.
Regardless of which option you utilize, or even if you take both steps, you’ll be able to shop with much more confidence. Why wait until you find the perfect home to discover problems with obtaining a mortgage?

Compliments of RE/MAX Central Daniel Bozza Callmehome.com

I barely got those words out of my mouth before a concerned mom toe kicked this half eaten chocolate chip cookie with the force of an NFL player. Surprisingly her young child simply watched his now airborne treat sail away without even shedding a tear. As I continued my stroll down this quiet street I started reminiscing back to my childhood days and the countless ground contaminated cookies I had dropped, rescued, “kissed up” and ate with confidence knowing I had performed the necessary safety measures involved. Back in the day this “kissing it up” ritual somehow sanitized it and made it suitable for consumption again. So what has changed? Have we become so resourceful that we can simply purchase a new cookie as if the one we dropped is less important? Is our ground that much more polluted then it was 30 years ago where as the sanitizing ritual is no longer effective? We are talking about a chocolate chip cookie….not a sugar cookie…..not an oatmeal cookie….. A Chocolate Chip Cookie….. come on cookie lovers, if you dropped it, pick it up! 

UPDATE: My 17 Year Old Daughter Speaks on the Subject: “Mom, just yesterday I dropped my Hershey bar in the parking lot, kissed it up and ate it, worked like a charm!

Disclaimer: Not responsible for anyone getting sick from not properly sanitizing fallen food items nor am I suggesting you kiss it up and eat it…I am just saying a chocolate chip cookie is not something to be wasted…

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