Pay your rent by check. I want to stress this to anyone that is currently renting and especially to first time buyers. Most lenders are now requiring that first time buyers or people that haven't owned a home in the past three years to have two years canceled rent checks or verification from a legitimate property management corporation. If you do not have this type of verification it will effect your loan to value and could affect your rate. Here are some things to keep in mind when you are paying your rent:
1. Always pay by check.
2. Always pay on time... Mortgage companies will check to make sure that you are paying your rent on time every month. If any of the payments are late it will count against you and could negatively affect your ability to purchase.
3. If you are renting from a property management company keep good records, in case there is a dispute over the timeliness of your payments.
4. If you are renting family member or from an unlicensed party, a letter from them will not count as rental history. You will need canceled checks.
As you can see paying your rent by check will benefit you greatly when you purchase your next home.
For more information on different types of loans please view the link below.
www.felixkonline.com/custompages_reports.php?key=b13
Thanks for reading and happy home hunting.
Felix Krynicky
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