The Loan Application: Residence History
You'll need to report your residence history for the past two years, including former addresses, move-in and move-out dates, rent amounts, and contact information for current and prior landlords.
If you currently own your own home, your lender or broker will want to make sure you're current on your mortgage, and that there are no problems with your current home that may interfere with the purchase of a new home. She'll also want to confirm your current home's value and your plans to sell or rent it out.
Tip!
If you are planning to rent out your first home, your lender may require you to qualify for your new loan and your current mortgage without the benefit of your rental income. This policy is meant to prevent the practice know as "buy and bail": homeowners buy a second, less-expensive property under the pretense of renting out their first home, move into the cheaper home, then stop making payments on their first home's mortgage.
If you're a current or recent renter, your lender or broker may contact your landlords to make sure that you have a consistent, long-term history of timely rent payment. Late rent payments don't necessarily show up on your credit report, and rent payment history is a major part of your track record when it comes to handling monthly living expenses.