On Rent Verification During a Mortgage Application
If you’re a first-time homebuyer entering the market after previously renting in past years, it’s possible you’ll be asked to sign a document known as a verification of rent. What exactly is this document, and why is it often important for those in this position for getting approved on their mortgage application?
At Altius Mortgage and our partners with Mortgage Ogden, we’re happy to assist first-time homebuyers and many other clients with all their home loan needs. Let’s go over what a rent verification document is, why it’s important, and how to proceed if you’re asked to sign one.
Why Are Rent Verification Forms Used?
For those who have not owned a home in the past, rent verification is one relatively robust way for lenders to assess your ability to make monthly mortgage payments on time.
Your rental history is looked at as an indication of your reliability when it comes to meeting long-term financial obligations. If you have a spotty or nonexistent rental history, it can be difficult to get approved for a loan or get favorable terms.
In general, the longer and more consistent your rental history, the better. A rent verification form is one way to show a lender that you have a history of making on-time payments.
What Does a Rent Verification Form Include?
A rent verification form will generally include information about your current or past landlords, how long you’ve been renting from them, and your current monthly rent amount.
Some forms may also ask for information about your rental history for the past few years. In most cases, you will need to provide information about your current landlord and at least one previous landlord.
If you have any questions about what information you need to provide or how to fill out the form, your mortgage lender should be able to help.
Living With Friends or Family
What if you have recently been living with friends or family and have not been paying rent? In this case, you may still be able to get a mortgage by providing other documentation that shows you have the income and resources to make regular payments.
For example, if you have been employed steadily for several years and have a good credit score, your lender may feel comfortable approving your loan even without a formal rental history.
How to Obtain a Rent Verification Form
If you are asked to provide a rent verification form, your lender will usually be able to provide you with the necessary paperwork. In some cases, your landlord may need to fill out and sign the form as well.
Be sure to give yourself plenty of time to obtain the form and have it filled out before your mortgage application is due.
Rent verification forms are just one part of the mortgage application process, but they can be an important piece of evidence for your lender. If you have any questions about rent verification or any other aspect of the homebuying process, reach out to the team at Altius Mortgage to learn more.
