So, even though you were declined for a mortgage you are not going to let the disappointment stand in your way. You have found your dream home and the owner has agreed to offer you a lease to purchase on the home. You are ecstatic. After all, what could go wrong? You have an entire year to improve your credit score!
As it turns out, a lot! The fact is that most people who enter into a lease purchase agreement never actually end up purchasing the home because they fail to get themselves in position to qualify for a home loan.
Don’t let this happen to you! You are much better off renting than throwing away an option fee on a home that you don’t end up purchasing.
There are two ways you can attack your financial situation. You can hire a credit repair company to restore your credit or you can work on your credit on your own. Deciding which route to go really depends on your personal situation.
Do you have the time it would take to repair your credit? You should count on spending an hour or so a week working on it. If you are already tight for time, you may be better off to hire a credit repair company.
Also, are you willing to get the education that you need to repair your credit? If not you are better off seeking the help of a professional.
There are downsides to working with a credit repair company. For starters, because you pay them monthly, they really are not all that motivated to deliver fast results. In addition to this, they typically only dispute credit for you and fail to implement more advanced strategies. Disputing credit is very simple and is a very basic credit repair strategy. For complete credit restoration, you may need to implement advanced strategies like debt validation and the 6-2-3 method.