Buying a Georgia Home in 2012? Let's talk RENT

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Mortgage and Lending with Bay Equity, LLC 770-634-4021 NMLS #206275 GA 25689

It seems that the payment of rent is one common obstacle in getting a mortgage approval for many first time home buyers.  For most financing programs,  we are looking for a 2 year payment history on rent.  Now, if you are renting from an apartment complex, not to worry, because we will be able to verify this information through the property manager.

If you are renting a single family home through a property management company, again, not a problem, we will be able to request the verification of rent from the property manager.

 

I have had several want to be buyers contact me recently that are paying cash.  Some are paying cash because they don't have a checking account, others because that has been requested by their landlord.  

If you are paying your rent in CASH, PLEASE STOP!

One of the reasons for requesting a verification of rent is to demonstrate your past payment history.  By paying in cash create a problem with documenting the paper trail to establish your payment pattern.  A letter of verification for rent is not acceptable from an individual landlord only 12 month's canceled rent checks will be acceptable.

 

So if you don't have a checking account, open one.  If you can't open a checking account, at least use money orders and keep the receipts.

 

If you want to buy a home, it is time to get your ducks in row.

 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

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Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

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Rainer
107,937
Ted J. Macy
Top Agents Atlanta Metro - Milton, GA

Kathy, I found this an interesting post, what about a tenant that does a wire transfer to the Landlords accout each month? I that an acceptable form of payment, for a loan applications?

Jan 01, 2012 03:07 PM #1
Rainmaker
646,218
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Yes, it would be acceptable documentation with twelve month's bank statements showing the payment being made.  Again, what we are looking for is the paper trail.

Happy New Year to you!

Jan 02, 2012 01:27 AM #2
Rainmaker
2,040,458
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

I had no idea this problem even existed!  I'm not a renter so it doesn't apply to me, but I will pass the info on to others!

Jan 02, 2012 02:57 AM #3
Rainmaker
646,218
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Thanks Sharon.  It has been an issue more than once during the last year.  I am just trying to spread the word.

Jan 02, 2012 07:21 AM #4
Rainmaker
564,892
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hi Kathy,

I have encountered this problem with a few buyers in recent years.  SUGGEST!  Best of success to you!

Jan 04, 2012 10:36 AM #5
Rainmaker
646,218
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Thanks Jordon!  Actually, this has derailed a transaction for me last fall. 

All the best in 2012!

Jan 04, 2012 10:46 AM #6
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Rainmaker
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Kathy Sheehan

Senior Loan Officer
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