Renting before mortgage

[bankruptsaluki]

Quick question. I have been discharged since April of last year. I have rebuilt my credit, getting three credit cards and a car payment. All of those have been on time. With the current mortgage market the way it is, and me needing to get out of my parents house, is it in any way beneficial for me to rent an apartment with a rent of $800 a month, and then a year from now look for a mortgage where I would be paying $800 a month. Would the mortgage company take into consideration that I am already paying $800 a month on a consistent and on-time basis, thus lessening their risk a little or uneasyness? Could I ask my landlord to present a letter to the possible mortgage companies that I have paid my rent on time each month?\

Thank you in advance for any information provided. appreciate it greatly.

BS

[emoney]

I only answer questions on what would or have I done, so here goes:
Before buying a house you need to have some savings say about 20% for a downpayment. This way you get the best interest rate and avoid private mortgage insurance.
In determining what your total housing cost is the expence of maintaining the home needs to be included. From my experience use from 25 to 33% of your payment after taxes and insurance are included for that cost. This means that if your payment is $1000/month included taxes and insurance you need to budget $1250 to 1333 for your total housing expence.
In using this plan a home will be a blessing and not a curse.
Regards,
emoney

[LostOne0069]

Hey there bankruptsaluki.

Yes, renting before buying can help you. It may be a wash as to if it will help you more than the $10,000 or so extra you would have for a down payment is you stayed living with your parents rent free and put the $800/month in a savings vehicle... but it definitely can help.