Here’s How Renting Will Help You Buy That First Home

We’re continuing our series to help folks become first-time home buyers in a year or less. But this week we have what may seem like an unusual suggestion.  Take advantage of your rental situation to give yourself a better ability to purchase.

With help from the OVM Financial blog, here are 3 key tips to consider.

  1. Always pay your rent with a check. Even if you’re renting from friends, or family, it’s important to document your dependable history as a reliable renter. You can’t do that without a paper trail.
  2. Always pay your rent – and other bills like utilities on time. Again, the goal here is to build proof that you will be a reliable borrower. It’s the factor lenders consider their highest priority in deciding whether you are a good candidate for funding. You want to pay promptly and make sure you are establishing a good track record.  Here’s another thing folks sometimes overlook – Make sure your landlord cashes your check right away.  Lenders go by the date the money gets placed in an account. If your landlord isn’t prompt, it looks like you aren’t prompt.
  3. Leave on good terms with your landlord. It’s much easier to borrow funds at good rates, if your landlord is on your side. You don’t want them to delay or ignore a lender’s request to document your payment history, or even worse, file some sort of claim if they felt you had damaged the property. If there are unusual circumstances, like a water pipe break during your rental, make sure that information is documented as well. The goal is to make your “exit interview” with the landlord as seamless and drama-free as possible.

For more tips on putting your rental experience to good use, including suggestions if you must pay by cash, please review this detailed information. If you have questions about any aspect of the home funding process, feel free to contact the Sanford office of Team Move/OVM Financial, at 919-774-0114.