Renting

Renting an apartment or renting a house can be a very exciting time in one's life, especially if this is your first time being out on your own. There are many things you need to be aware of when renting a house or renting an apartment. Be aware that there will be other items that you will need to pay for such as phone service, gas services, electric services, water and sewer, trash service, Internet and/or cable service, etc... Some of these will probably be included into your monthly rent payment, but it is highly advised that you ask questions about these items and read your rental agreement very carefully.

Another overlooked expense when renting an apartment or condo is renters insurance. Renters insurance can protect your personal property against theft, fire and vandalism.

Renting may at times seem more affordable than buying but you must also consider the opportunity costs. When you rent you do not share in any appreciation of the property. Many people have built wealth from their home appreciating in value.

It is critical that you pay your rent on time every month. Mortgage lenders look at rental history when underwriting a mortgage and a 30 day late rent payment can either get your loan denied or the loan to value decreased. You should always pay your rent with a check so you can verify rent history with the lender.

If you have a roommate, be sure that you are making not only your share of the rent on time, but also the that the total payment is on time. It is critical for mortgage qualification that your housing expense is paid in a timely manner.

paying rent does not produce equity

Homeownership can be a wonderful thing but it also can be very expensive. Always make sure you have a budget in place so you can see on paper what your balance sheet is going to look like.

» DISCLAIMER: The information contained in this article on 'Renting' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.