Time and time again I am faced with the challenges of placing an extremely difficult loan. More often than not what makes these loans difficult depends on numerous factors, however a verifiable rent history has become more important as lending guidelines change and evolve with the ever volatile housing market.
Rent is typically paid one of four ways either by personal check, money order, cash and auto debit from sort of banking account. These funds are usually dispersed one of two ways either to a private individual (landlord) or a management company. The bottom line here is that the rent gets paid in a timely fashion to the right individual, however in terms of qualifying for a mortgage loan certain aspects of verifying this are extremely important.
First, the best way to pay is by personal check to a management company. Why? Well, if the rent were paid by check it is very easy to verify timely payment be requesting cancelled copies of the written check from your banking institution. If an individual pays by cash there is absolutely no paper trail to accurately verify your rental history and if you pay to a private individual things even get more complicated. Why? Because more and more lenders are rejecting private party VOR's (Verification of Rent) because they are too easily fabricated or falsified.
Simply put paying by personal check is always the best way this way you have an accurate record of payment (canceled check) and we can also validate the payment by requesting copies of the endorsed check.
Your comments are welcomed!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker
Rent is typically paid one of four ways either by personal check, money order, cash and auto debit from sort of banking account. These funds are usually dispersed one of two ways either to a private individual (landlord) or a management company. The bottom line here is that the rent gets paid in a timely fashion to the right individual, however in terms of qualifying for a mortgage loan certain aspects of verifying this are extremely important.
First, the best way to pay is by personal check to a management company. Why? Well, if the rent were paid by check it is very easy to verify timely payment be requesting cancelled copies of the written check from your banking institution. If an individual pays by cash there is absolutely no paper trail to accurately verify your rental history and if you pay to a private individual things even get more complicated. Why? Because more and more lenders are rejecting private party VOR's (Verification of Rent) because they are too easily fabricated or falsified.
Simply put paying by personal check is always the best way this way you have an accurate record of payment (canceled check) and we can also validate the payment by requesting copies of the endorsed check.
Your comments are welcomed!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker
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