Length of Time at Address

by Tim
(Bloomingdale, IL)

Does it make a difference to mortgage lenders when it comes to how long you have lived at your current residence prior to obtaining a loan? Is 2 years preferred compared to 2 months?

======ANSWER=====

Hello Tim,

Thank you so much for coming by my website and asking a question.

What lenders look for is stability. If you have lived at the same address for two years, this is what they prefer.

However, with that said, if you have lived at an address for two months, they will need an explanation as to why you moved and are now applying for a loan. Also they will look at how long you were at your previous address. Was it 2 years or longer?

When I was in the mortgage business, I used what I called the 222 rule. Two years of employment with the same employer, 2 years of living at the same address, and two pay stubs from your current job.

If you have moved recently and are now applying for a mortgage, you may need to help the lender understand why the move. If you look at it from their point of view, they may be thinking there was some type of problem with your last landlord and that is why you moved.

Now you decide to buy a house. You do not have any rental history with your new landlord. They will do rent verification with your previous landlord for sure.

Now if you moved into an apartment from your parents house, well that can be a different story.

Since I really do not know for sure exactly what has taken place I can only give you these examples and hope you can identify with them.

In the long run Tim, you need to realize that lenders tend to look at the borrower like he is guilty until proven innocent. They look at each borrower like they are going to default on the loan and you have to prove otherwise.

They have the money so we have to play by their rules.

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Kind Regards,

Jeff Ragan