When buying a home, what questions do the bank/loan people ask your current (soon to be past) landlord?

Asked by Amber W., 95901 Mon Mar 22, 2010

I'm buying my first house and it looks like its supposed to be closed in about a week or so. It's recently come to my attention that one thing they do near closing is call your landlord. I've had no issues with the loan so far (got pre-approved easily) and my credit score is excellent but my relationship with my landlord is not the best (their grouchiness is one of the things that pushed me to look into owning vs renting a house).

Now, knowing that I've never gotten along well with my landlord, I'm started to get paranoid about what they will ask him. I heard that they'll just ask him if I'm still living there, how long I've lived there and if I've always paid my rent in a timely manner (I have). Is there anything else I should expect? I know its probably silly to worry about, but now that things are getting down to the wire I'm starting to get anxious about pretty much every little thing they've got left to do. Any details will be much appreciated!

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Martin Campos, Agent, Marysville, CA
Thu Jan 26, 2012
Well first of all congratulation on your new home to be. And no, you don’t have anything to worry about. What the banks more concern is of is your ability to re-pay the loan so one more time congratulations! Yes
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Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Mon Mar 22, 2010
Amber W.

I would not be unduly worried about your relationship with the landlord and what he might say. If your lender contacts him it will most certainly, and probably exclusively, be to obtain a verification of rent (VOR). So long as you've made your rent payments on time, I cannot see how anything else he might say would enter into your new loan's qualification.

If your loan application and previous residence history is accurate, and you've always paid rent on time and this can be documented, you should be fine.

Keep the faith and good luck in the new home!

Rob Spinosa
rspinosa@rpm-mtg.com
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