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Lease to buy option on home- when can we lock in the interest rate?

Hello, We are considering making a lease to buy offer on a home and I am wondering when we can lock in the interest rate for the home. For example, if we lease for 12 months, with the option to buy, do we have to wait until the end of the lease in 12 months to secure the interest rate or can we lock it in as soon as they sign the lease to buy contract now? I would appreciate answers from anyone who has experience in this area. Thanks so much! We have good credit now. My husband justs wants to wait on buying for another year and I don't want to lose buying this house, so that is why we are thinking of lease to buy. My question is can we lock with a bank's interest rate NOW, when we are just beginning the lease aspect, rather than only locking in the interest rate in 1 year? Will a bank allow you to lock in an interest rate when you are just in the lease phase of the lease to buy option?? thanks!

Public Comments

1. Hello Annie: Generally speaking . . . this all depends on the contract that you sign and all items in the contract are negotiable ~ or would be if I was signing the contract :):) Be diligent in reading what is wished in signing and ask the question of the person asking you to sign ~ can we lock in the interest rate for " X " period of time ? or whatever your needs are at the time. Be well
2. Usually lease options are used to sell a house to someone who can't qualify for a loan at the present time, but would be able to at or before the end of the lease term. Thus if you were able to get the financing done before the end of the lease term, you would likely be able to buy it before the year was up and like in any other case, the lease would survive the sale (except you wouldn't need to pay rent to yourself). To be on the safe side, specify this possibility when negotiating the Lease option if it is not already stated in the contract. Locking into an interest rate without being qualified for a loan is likely a waste of time for you and your mortgage broker.