• Thomas Lawhead

Saving Lease-Option Agreement Documents

--Before signing a lease with option to buy agreement, make sure you understand what documents you will need to keep in order to use your down payment to purchase the home. Banks will require a copy of the cashed check along with a copy of the bank statement showing the money coming from your account AND a transaction report. In bank terms, this is called sourcing the funds and is required of all lending institutions for down payments, money from retirement accounts and gifts from immediate relatives. A failure to keep records could mean you will be unable to use your down payment when you purchase your home. If your credit score is under 620 you will also need to keep a copy of your cashed checks on your lease payments for the last 12 months. Doing these things will ensure that when you're ready to buy your down payment will be used to purchase your new home!

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