Home Buying in Atlanta>Question Details

Rico Sauve, Home Buyer in Nashville, TN

9/2013 I signed a 12 mths rental agreement to a property. credit check done to secure the lease. I want to buy a house in 2-4 months.

Asked by Rico Sauve, Nashville, TN Wed Oct 2, 2013

Would have any issues having my credit run to qualify for my 1st mortage.
Would I have any problems during the mrtg loan process with me breaking a lease?!

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Answers

10
Hi Rico,

There should be no issues with obtaining a mortgage. Just make sure that you do not have your credit checked repeatedly or make any other big purchases on your credit. That could hurt you.

Find out the cost to break your lease. There are ways to get out of it without paying extra out of your pocket or at the very lease a way to even things out so that you do not have to pay that and a mortgage.

If you have any questions feel free to contact me anytime. I'd be happy to help.

Tyler Willis, REALTOR®
Keller Williams Realty Intown Atlanta
621 North Ave NE, Suite C-50
Atlanta, GA 30308
Office: (404)541-3500
Direct: (678)656-5524
tylerwillisintown.kwrealty.com
2 votes Thank Flag Link Wed Oct 2, 2013
As others have stated, you need to read your lease. My lease has a 60 day notice and a two month penalty for breaking a lease, so in my leases you could be liable for up to four months rent.

Most landlords do not write leases so tenants can break them.
1 vote Thank Flag Link Sun Oct 6, 2013
Thanks Richard... that is a heavy penalty
Flag Sun Oct 6, 2013
Only harm is your expense to fulfill terms of early termination of lease. I'd ask landlord dust to provide letter of acceptable payment history to make sure no adverse rental reference during mortgage application and underwriting. They will verify last 12 months rental payment history. See my profile and contact me for more direction as you navigate your way to home ownership.

Ricky Rucker, MBA, Realtor
Coldwell Banker Midtown
678-744-9655 direct 
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1 vote Thank Flag Link Wed Oct 2, 2013
i WOULD SUGGEST YOU READ YOUR LEASE AND SPEAK TO YOUR LANDLORD
1 vote Thank Flag Link Wed Oct 2, 2013
Thank you everyone who responded and addressed my concerns. The lease was made for a year thru 8/31/14. I spoke with a mortage comp. who said I shouldnt be required to pay the month in advance if i am going to purchase a home... maybe some new provisions to an existing law.
0 votes Thank Flag Link Wed Oct 2, 2013
Hi Rico: you said " I spoke with a mortage comp. who said I shouldnt be required to pay the month in advance if i am going to purchase a home... maybe some new provisions to an existing law". Sorry to say, Rico, there is no such law. You get to break the lease (without the risk of a landlord's lawsuit and a Judgment) when buying a home, in only 2 circumstances: 1) if the lease states that provision to break it, in writing (which is very rare, if you didn't ask for this to be inserted in the lease, up front, or 2) where you work out a deal with the landlord to break the lease, in writing. All ot the terms and penalties you will pay must be in writing. Why, because the bank or mortgage company will likely ask for your current lease, see you are breaking it, and want to know what this is going to cost you. So, the bank or mortgage company will be looking for you to have both the funds for new mortgage down payment/closing costs, &funds to pay the lease breaking penalties.

Steve K.
Flag Wed Oct 2, 2013
What does your lease say? Does your lease require you to pay the entire 12 months if you break the lease? Do you have enough money saved to pay out the remainder of your lease and cover your down payment and all of the closing costs associated with a new home purchase?

My best advice is that you begin looking for a new home on August of 2014. In the meantime, continue repairing your credit and save your money in preparation for your new home purchase.

Fred Yancy, Broker
Crye-Leike Realtors
(678) 799-4663
http://fredyancy.crye-leike.com
0 votes Thank Flag Link Wed Oct 2, 2013
Hi Rico,
No lender is going to qualify you without checking your credit. As long as you are in agreement with your landlord, there will be no problem.

You can call or email me for any other help you might need.

Jerry Jenkins
FIRST UNITED REALTY
770-912-5148
jerry.jenkins124@gmail.com
0 votes Thank Flag Link Wed Oct 2, 2013
I believe inquires on your credit report are one thing , Lines of credit for things you have to pay are another .Keep paying on time ,do not get in debt, pay off items you can ,look good in your credit score to help get a good interest rate . If you break your lease you may pay extra for that , see if you are allowed to sub -let it to someone else ....Just keep in mind you are responsible for them living there and repairs or any concerns ...
0 votes Thank Flag Link Wed Oct 2, 2013
Hi Rico, I don't think you will have a problem to qualify for a mortgage. However your lease should have a provision if you break the lease. It is best to read it and see what the requirement is. Please let me know if I can be of assistance to you.
0 votes Thank Flag Link Wed Oct 2, 2013
Rico,
you won't have any issue from the mortgage side other than possibly having to show you cancelled your lease. If so, The lending bank may wish to see you don't owe any debt concerning the lease break. of course depending on your overall qualifications this may not come up at all.
If you have other questions concerning your next home purchase please feel free to call me.

Thanks,

Rob Robbins
Senior Mortgage Consultant
Cornerstone Mortgage Group
6151 Powers Ferry Road NW
Suite 610 Atlanta GA 30339
Office 678-578-7613
Cell 404-932-5353
rrobbins@cmghl.com
http://www.cmg-homeloans.com
0 votes Thank Flag Link Wed Oct 2, 2013
You're welcome Rico! let me know if I can help. Feel free to contact me with any questions you may have. You also can go to aminahomes.com to search for properties.
Flag Wed Oct 2, 2013
I appreciate your assistance. I lived with with grandmother.. we sold the house and temp. moved into a house we rented. I tried had to get an apt. but she remianed unhappy. I checked my scores weekly and it still shows im above 650 in scores.
Flag Wed Oct 2, 2013
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