The ABCs of Getting a Mortgage Loan for First-Timers

Posted on: 23 September 2022

Your home is your personal sanctuary and protection from the outside world no matter if you own it or you are renting from a landlord. A rental house provides you the space of a single-family home or other similar dwellings without having to own the property or handle its maintenance and upkeep. Here are some tips to help you search for, select, and apply for the right home to rent.

Evaluate Your Budget

Your home rental budget may not consist of a mortgage payment, homeowners insurance, or home repairs, but there will be some expenses associated with living in the house. It is a good idea to go through these various expenses so you have a clear outlook on your budget and you know exactly what you can afford. 

When you rent a house, you will need to usually cover the utility costs for the home, such as gas, electric, water, sewer, trash pickup, and internet service. Check into the parking situation at the home to find out if you have a parking spot reserved or if you will need to pay an extra parking fee. You might also need to check out the landlord's requirements for you to secure rental insurance to cover your possessions inside the unit. There may be some upfront costs when you initially move into the rental house where you will need to buy and install window coverings, patio furniture, or shelving and storage accessories to help with your personal storage inside the property, for example.

Prepare For the Application

As soon as you have found the right place to rent, you will need to get ready to apply for the rental application. A rental application is required so that the owner, landlord, or property manager can adequately qualify you for the property's lease. This will include making sure you have the income to support the rent, you have good credit and payment history, and your background check comes back looking good. A landlord will need to check through these areas before they have you sign the lease and move in because they have a financial liability in the event that you stop paying rent, cause damage to the property, or participate in criminal activities within the property.

Collect your documentation so you are ready to provide it to your landlord or property manager if they request it. By having it ready in advance, you can speed up the application process and ultimately make your move-in date earlier, preventing any delays in the evaluation. Get your paycheck stubs together for the past couple of weeks, arrange and write down personal references, and get your tax returns together for the past couple of weeks, as this can also be a requirement with some rental homes.

Contact a realtor to find houses for rent.