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The HomeBuyer's Account
Smart HomeLease
HomeBuyer Prepurchase Terms
Over the next 3 years (or less), the Smart HomeLease Pre-purchase Program will help you establish the qualifications required by lenders to borrow money to buy your new home. While they look at several things, three factors are primary in influencing their decision:
• Your Credit Score
• Your Down Payment
• Your Payment History during Smart HomeLease
Thus, Smart HomeLease has been designed to educate and motivate you to use this pre-purchase phase to:
• raise your Credit Score to at least 625, if needed; 700+ gets the best interest rate and lowest payment
• accumulate a down payment of 5-15% or more to purchase the home;
• establish a consistent payment history with Smart HomeLease.
DOWN PAYMENT: Smart HomeLease requires a minimum 2% Down Payment. Your monthly payment lowers around $13.00 per month with each additional $500 down payment that you invest when you establish the lease. This Down Payment will be credited to your HomeBuyer Account. Each payment will increase the amount in your HomeBuyer Account by __________ IF your payments are received by Smart HomeLease on or before the due date.
PAYMENT HISTORY: IF YOUR PAYMENT OF __________/mo. or __________/ 2 X per mo. IS NOT RECEIVED by Smart HomeLease BY THE DUE DATE, your account will NOT be credited ____________. Additionally, you will be charged a late fee of _________. Your opportunity to transfer the HomeBuyer credit to your HomeBuyer Account is lost--NO EXCEPTIONS. You may want to keep some money in a savings account or keep a reserve amount in your checking account so that unexpected deficiencies in your income do not compromise your ability to earn your HomeBuyer credit.
As a result of several late payments, at the end of the lease, you may not have the full amount needed for Down Payment to finance the home. This may result in a higher loan payment due to a higher interest rate. This higher payment provides you no benefit, it just costs you money. Thus, to continue growing your Homebuyer Account to maturity and establish a consistent home payment history, we recommend making your payment by the Due Date.
CREDIT SCORE: Additionally, you will be provided some information regarding how to improve your Credit Score. You will want to start that process immediately, because it can take a few years to get everything worked out and establish your new and improved Credit Score. The Smart HomeLease term gives you a period of time to make the improvements needed prior to seeking to qualify for a loan.
Smart HomeLease is a closed-end lease. You don’t have to buy the home at lease end. We are going to work very hard to make you happy so you will want to buy the home at lease end. If, however, you choose not to purchase the home at lease end, your HomeBuyer Account will be used to restore the home to like-new condition and resell it. Any money left in your HomeBuyer Account that is not consumed by the resale process will be refunded to you, providing that you leave us your forwarding address.
What does this mean to you? During the term of the lease, your HomeBuyer Account will accumulate ____________ if you make all your payments by the Due Date. If you maintain and improve your home and yard, causing it to be very desirable on resale, it will hold its value, require little cleaning, resell quickly, and enable you to collect most of the funds in your HomeBuyer Account. You can even clean and help us market the home before you move out. If resold for the same price you paid prior to your move-out with no maintenance needed, you may even receive all the funds in the account.
If you fail to complete the Smart HomeLease term of _____ months, for whatever reason, you will forfeit all your HomeBuyer Account and your Down Payment paid at move-in. These funds will be used to remarket the home with no refund possible.
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