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  #1  
Old 11-10-2007, 09:38 PM
Berge20 Berge20 is offline
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Default Rental Question

I'm starting to get to the point where I want to make sure my ducks are in a row for the jump to purchasing a house in the next couple years.

Presently I am renting an apartment on my own, but the lease isn't in my name--I took over it from my friend who left town 18 months ago, so I am only listed as an occupant.

Given the rent is ~$1,500 per month, is there any need for me to get the lease put in my name so that when I get to the homeowning point, it will be something to point to in terms of what I can handle per month? Or does that really not matter and they go entirely off credit report/history?
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  #2  
Old 11-10-2007, 09:43 PM
Thremp Thremp is offline
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Default Re: Rental Question

It will show up on your credit report/history if it is your lease.
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  #3  
Old 11-10-2007, 09:54 PM
Berge20 Berge20 is offline
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Default Re: Rental Question

Given that I'd imagine it isn't entirely uncommon to have people going from Subleased places to home purchases, if I choose not to get it in my name (that would result in higher rent I'd guess right off the bat)--is there any way that it would be taken into account?
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  #4  
Old 11-11-2007, 04:07 AM
eastbay eastbay is offline
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Default Re: Rental Question

[ QUOTE ]
It will show up on your credit report/history if it is your lease.

[/ QUOTE ]

None of my rentals ever appeared on my credit report, as anything other than an address.

I don't think it matters. Your payment ability will be judged primarily by your debt to income ratio and credit score.

eastbay
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  #5  
Old 11-11-2007, 06:32 AM
RikaKazak RikaKazak is offline
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Default Re: Rental Question

[ QUOTE ]
[ QUOTE ]
It will show up on your credit report/history if it is your lease.

[/ QUOTE ]

None of my rentals ever appeared on my credit report, as anything other than an address.

I don't think it matters. Your payment ability will be judged primarily by your debt to income ratio and credit score.


[/ QUOTE ]

this is true

I own rentals, and I'm the only person in the world that knows if one of my renters pays on time or not (other than employees/accounts etc. of course) What I'm trying to say is if the lease is in your name, you fail to pay, I get a judgement, it goes on your credit report.

HOWEVER...if it's in your name, you pay on time, I don't report to the credit agencies and say "on time payments" or anything like that.

I went from a renter to a homeowner and I NEVER had a lease in my name (1 place I just gave my word, 2 other places I sublet, another place it was my buddy on the lease but he left so I took over (owner still thought I was him, lol))

Anyways...I would recomend not getting it in your name. When you apply for mortgages they'll ask where you lived last 2 years, you'll say renting place "x"...then they just take your word for it and don't double check or anything.

Now 1 tip you should look at is trade lines. (I think that's what you're concerned about) Trade lines are like credit lines. Basically, it's a debt or responsiblity that you have that DOES report to the credit bureaus. They are things like cell phone bills, credit cards, etc. etc. I recomend to all my buddies that plan on owning a house in 2-3 years to open 3 credit cards (use but pay off the balance at the end of the month if you can) and then have a cell phone (set up on automatic payment). If you have anything else, like student loan, car loan, etc. that's fine, they count too, just make sure you PAY ON TIME! [img]/images/graemlins/wink.gif[/img]

Hey man, if you have any other questions don't hestitate to pm or im me. I can try to help you out the best I can. I've gotten no doc loans, partial doc, full doc before in 2 different states and for living in and renting (both residental and commercial) so I'm pretty good with teh process from a "poker player looking to invest or own" aspect...lots of tricks I've learned [img]/images/graemlins/wink.gif[/img]
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  #6  
Old 11-11-2007, 08:48 AM
stephenNUTS stephenNUTS is offline
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Default Re: Rental Question

[ QUOTE ]
It will show up on your credit report/history if it is your lease.

[/ QUOTE ]

No it doesnt....most current 1st mortgages(unless you have defaulted/foreclosure) ,dont even show up on your credit report,so I dont know how a rental would ?


Its one of the biggest unknowns in the CR world [img]/images/graemlins/wink.gif[/img]

I also thinks its a BIG reason that alot of these sub-prime/risky loans get through.

Obviously...it has had a negative affect directly related to the sub-prime mess we are in now.

If peoples credit were MORE scrutinized the last few years in the housing market,alot of these problems would not have occured or exist.Albeit housing appreciation would be NOWHERE near the levels it reached also

But the FAT-CAT fees associated with the mortgage industry made even the biggest WS firms abit too greedy IMO,and they are drowning in these bad loans bigtime!

Now they want a 750+ FICO score with 50% down...lol ....to qualify(its a joke).

It is a shame however,as a REAL QUALIFIED borrower,esp. a first timer like the OP.....is indirectly paying for it,as it has really put a squeeze on credit availibilty


SF
[img]/images/graemlins/frown.gif[/img]
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  #7  
Old 11-11-2007, 08:51 AM
stephenNUTS stephenNUTS is offline
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Default Re: Rental Question

Good Post RikaKizak [img]/images/graemlins/smile.gif[/img]

Stephen
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  #8  
Old 11-11-2007, 01:00 PM
Thremp Thremp is offline
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Default Re: Rental Question

I stand corrected. [img]/images/graemlins/frown.gif[/img]
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  #9  
Old 11-12-2007, 12:01 PM
Berge20 Berge20 is offline
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Default Re: Rental Question

Thanks guys, I think we came to the answer. I know the first home purchase is a big step, so I'm trying to plan ahead. Wish this market wasn't so pricey, which makes starting harder, but not much I can do about that given my line of work.

I'll do some hanging out here more and see what the tips and tricks are for getting the ole credit score up, up, up to save on the interest here in a couple years.
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