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Thread: Credit Application for an apartment

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    Default Credit Application for an apartment

    I'm about to graduate college and was planning on staying in my college town and just working and saving up money for the next year, so I'm looking at apartments now. Of course they want to do a credit check, and I really don't know what to put down on the application. They want my present employer information as well as for me to write in my "monthly income." I only work part time right now, but off of that, I can estimate what my monthly income will be when I graduate and am working more. Do I just tell them I'm a dancer and give them an "average" of what I would make a month working full time? I know my credit is good and that I would be more than capable of making rent. I guess I'm just worried that they won't accept my job as stable or secure, or they'll make me get someone to co-sign. If I have to get my parents to co-sign, will they see anything where I have to write down my occupation and monthly income?

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    Default Re: Credit Application for an apartment

    I guess I'm just worried that they won't accept my job as stable or secure, or they'll make me get someone to co-sign. If I have to get my parents to co-sign, will they see anything where I have to write down my occupation and monthly income?
    One of the 'side effects' of the subprime mortgage debacle and ensuing new financial regulations is that 'stated income' is no longer acceptable for credit applications ... with an apartment lease being a form of credit application. New financial regulations, as well as in-house policy of lenders, now requires official 'verification' of the would-be borrower's income ... with an apartment lease being a form of 'borrowing' ( i.e. if the lease tenant pays 3 months worth of 'rent' upon moving in, the landlord is essentially loaning that tenant another 9 months worth of 'rent' money and will take a very real loss if that tenant is unable to make the next 9 months worth of monthly lease payments ).

    Where 'corporate' landlords are concerned, their standards for official 'verification' of income is a weekly paycheck stub. For people who do not get paid a weekly paycheck, their standard for official 'verification' of income is a couple of years worth of tax returns. Obviously this is problematic for dancers or any other self-employed persons who haven't been 'in business' long enough to have filed tax returns ( or who elected not to file tax returns for income earned in previous years ). From the standpoint of verifiable income, money earned but not officially reported as income to the IRS doesn't exist in the eyes of the lender / landlord.

    As to parents acting as co-signers, where 'corporate' landlords are concerned this would boil down to the parents having to sign some sort of official lease document ... which of course would provide the parents with access to any and all information provided by the would-be borrower / tenant.

    There is also an issue that corporate landlords may report the existance of a new lease in the same manner that a bank would report the existance of a new loan. This has the potential for finding its way back to IRS computers ... which will then attempt to run a cross-check comparing the amount of income officially reported by the borrower / tenant on their tax return versus the amount of money that borrower / tenant is actually spending. If, for example, the borrower / tenant is now making $10,000 a year worth of lease payments, and lives in a zip code area where the IRS database of average costs of living ( food costs, utility costs etc. ) amount to another $8,000 a year, but the borrower / tenant only reported earning $15,000 in income to the IRS, a 'knock on the door' from an IRS auditor could soon follow.

    These days dancers are usually far better off seeking out non-corporate 'mom and pop' landlords for apartment leases ... since they are not bound by the same official income 'verification' requirements and typically do not bother to report the existance of new leases.

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    Default Re: Credit Application for an apartment

    Depending on the apartments, and the area you live in... there are sometimes ways to get around being able to prove your income.
    Honestly... if you find a place you like, just call and ask. "Hey, I'm an independent contractor; I'm interested in your apartments. I make more than enough money to pay rent, but it's difficult for me to prove my income. How can I get approved?"
    Quote Originally Posted by camille27 View Post
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