Your rental history is an extremely important factor in determining whether you can qualify for a home purchase. The best way to pay your rent is by personal check. The reason for this is that lenders will usually want to verify that you have paid your rent on time for the last 12-24 months. The easiest way to do that is with canceled rent checks.

Some people when planning to buy a home move in with a friend or relative where they don’t have to pay a set rent in order to pay off debt or save money for a down payment. This is a mistake because they won’t be able to provide rental history for that time period. You are better off continuing to pay rent. Renting while saving or paying off debt may mean that it will take more time to pay off the debt or save the down payment. That is still better than not having a rental history when you apply for a home loan.

Many people simply do not know that how they pay their rent is important. This would also be taken up as part of your personalized program on the American Home Buyer’s Service.

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