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KellyNYC
LIF Adolescent
Member since 10/05 650 total posts
Name:
Kelly
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Getting a mortgage while still paying rent
Our lease isn't up until September but we are about to put an offer in on a house and apply for a mortgage now. The current owner of the house will then live in the house and pay US rent until our lease is up and we can move in. We were already pre-approved for a mortgage, but now are nervous that the bank won't want to see us carrying both payments which LOOK like they take up most of our monthly income for a few months, even though we'll be compensated for one of them.
Will they allow us to explain the situation to them or might this be an issue??
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Posted 2/13/11 8:17 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Getting a mortgage while still paying rent
rent isn't on your credit report....the bank would have no idea about that
I wouldn't stress over it
many people pay rent still while they pay a mortgage for a few months- like if they are renovating
it's not uncommon
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| Posted 2/13/11 9:20 PM |
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jmf423
:)
Member since 5/05 6372 total posts
Name:
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Re: Getting a mortgage while still paying rent
we paid rent for 4 months after we bought our house. the mortgage co never asked about our rent
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| Posted 2/14/11 9:35 AM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Re: Getting a mortgage while still paying rent
Unless you disclose that you will still be paying rent once you buy, they would have no way of knowing that. The bank will assume that once you purchase you will be moving in and stop paying rent in order to pay the mortgage. I would not disclose that's what you planning on doing
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| Posted 2/14/11 10:34 AM |
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JoJo2010
Happy Family
Member since 8/09 6266 total posts
Name:
JO
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Re: Getting a mortgage while still paying rent
But won't the bank see a payment come out of the bank account once a month and questions what that is for?
When we got a mortgage they looked at all our bank accounts and asked lots of questions.
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| Posted 2/14/11 1:18 PM |
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dfw343
LIF Infant
Member since 7/10 246 total posts
Name:
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Re: Getting a mortgage while still paying rent
renting isn't a liability. Leases can be broken. For all they know, you can break the lease.
I'd be more concerned with insurance while the current owner is renting from you while you own it. Get home owner's insurance as soon as you close just in case!
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| Posted 2/14/11 4:00 PM |
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Deeluvsvinny
DONE
Member since 10/08 4952 total posts
Name:
Whatever
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Re: Getting a mortgage while still paying rent
Posted by dfw343
renting isn't a liability. Leases can be broken. For all they know, you can break the lease.
I'd be more concerned with insurance while the current owner is renting from you while you own it. Get home owner's insurance as soon as you close just in case!
I'd be concerned with insurance too. You may want to tell the insurance co you are renting it out for the first few months as the coverages are different for renting and occupying.
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| Posted 2/14/11 8:09 PM |
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CAMCaps
Live Laugh Love Run
Member since 6/07 4922 total posts
Name:
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Re: Getting a mortgage while still paying rent
We closed on our house in the beginning of November and had to pay 2 more months of rent. There was no issue with the mortgage company.
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| Posted 2/14/11 8:35 PM |
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