By Admin on Sep 30, 2008 in Renting & Real Estate
dianenjeff asked:
I am currently renting to own with a contract. We pay the seller every month. The only problem is that since we do have an actualy mortgage and he does not report to the credit bureaus our payments are not effecting our credit. We are trying to build up our credit. The deed of the house is to be in our name soon and I was wondering if the actual deed effects your credit?
Website content
I am currently renting to own with a contract. We pay the seller every month. The only problem is that since we do have an actualy mortgage and he does not report to the credit bureaus our payments are not effecting our credit. We are trying to build up our credit. The deed of the house is to be in our name soon and I was wondering if the actual deed effects your credit?
Website content
it depends if he is not reporting it it wont show in your report. now if you are coming to the end of the contract then you should soon be financing this property.
what is good is that with the payment history and the contract in hand you can just refinance and hopefull at a lower rate. since you have the contract when a lender refinances you they consider it a refinance since you have basically been paying a mortgage to a private party!
pearlmel | Oct 1, 2008 | Reply
It only helps your credit marginally. Credit is determined by lines of credit being used and paid off. And that line of credit has to be reported to the credit agencies. So the paid off deed would help getting a loan once you built up your credit line. You need to start a credit card, small personal loan (even just $500) and pay it off on time.
Bob D | Oct 2, 2008 | Reply
No, it does not. Deeds are not credit and are not involved with credit reporting at all.
Elsa D | Oct 5, 2008 | Reply
No it is not on your credit report. Keep records (cancelled check copies) of your payments to help your credit history.
hirebookkeeper | Oct 8, 2008 | Reply
Save every cancelled check so you can prove you made timely payments. To eliminate the possibility of the owner not depositing your checks right away, see what you can do to deposit them to his account and get the deposit receipt so you can evidence the day your payment was made. When you are getting close to apply for your mortgage, give your Loan Officer a copy of these timely payments and have him contact the credit bureaus to add this to your credit report.
matsonb | Oct 11, 2008 | Reply
No. In this case, our credit is not affected.
DallasLoanGuy | Oct 13, 2008 | Reply
No the deed will not show on your credit report. However with cashed checks you should be able to file a credit supplement to have the rent listed as a trade line (account) on your credit report.
matzael | Oct 14, 2008 | Reply