Every American teen dreams of the day he/she will leave their parents home and rent their first apartment. What a wonderful time it will be. Independence. There is no one to boss you around. Most people don’t plan for the future. Are you thinking a purchasing your first home? Are you currently renting an apartment? How are you paying? Check, Cash, or Money order?

The reality is that lenders for first time homebuyers want to see a 12 to 24 month rental history. If you’re renting from an apartment complex that has a management company onsite then lenders will accept their word. What happens if you’re renting from a private person that owns a couple of properties and is managing it themselves? The lender will want to see canceled checks for the last 12 to 24 months. The reason for this is to see if you can pay on time. If your checks were dated before the rent was due then you’re a good candidate to pay your mortgage on time. But if you have inconsistencies in your rent payments the underwriter will have to make a decision based on certain guidelines.

Underwriters are paid by the lender to ensure that the borrower will have the ability to pay the mortgage. If you don’t fit into their guidelines then you will not be able to obtain a mortgage. Are all lenders guidelines the same? No they are not. That is why it is better to go to mortgage broker than to a bank when getting a mortgage. Mortgage Brokers have many different lenders with different guideline criteria. One lender may accept a private Verification of Rent when another lender will not. Also, many mortgage brokers will know what lender that has less stringent guidelines over another.

So when considering purchasing a home make sure you have canceled checks proving your ability to pay rent on time. Cash and money orders will not be sufficient because those forms of payment can’t be proven like canceled checks.

Steve Salzman is a Credit Mortgage Specialist for American Independence Mortgage located in Chadds Ford, PA. Steve has seen many different situations in the Mortgage Industry that have affected his own clients.