Rent Payment for Mortgage

Renting a place to live can be a great way to have a stable roof over your head without the commitment of homeownership. However, if you are planning to buy a home in the future, it's important to pay your rent on time and consistently, and document your payments. This can help you qualify for a mortgage later on.

When you apply for a mortgage, the lender will look at your credit history to see if you are a good candidate for a loan. Having a history of paying your rent on time and consistently can demonstrate to lenders that you are a responsible borrower who is likely to make timely payments on your mortgage.

In addition, having a documented rent payment history can also help you qualify for a better interest rate on your mortgage. Lenders look at a variety of factors when determining the interest rate for your mortgage, including your credit score, your income, and your payment history. If you have a strong payment history, you may be able to qualify for a lower interest rate, which can save you thousands of dollars over the life of your loan.

To ensure that you have a documented rent payment history, it's important to keep copies of your rental agreement and all canceled checks or bank statements. If you pay your rent by check or through a rental payment service, you should be able to easily access your payment history. 

NEVER PAY CASH FOR YOUR RENT, if you're wanting to get a mortgage later.

Cash can't be documented.

Paying your landlord the same amount of rent every month and documenting your payments is an important step in preparing to qualify for a mortgage.  So, whether you are planning to buy a home in the near future or just want to maintain a good financial track record, it's always a good idea to pay your rent on time and document your payments

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.