Why does my lender want to contact my landlord about me financing a vehicle?
I need financing for a used car so I'm going through the process. The lender wants to talk to my landlord before they give me approval. Why do they want to talk to my landlord?
“Talking to your landlord is a way for the lender to see what type of person you are with respect to on-time payments. This also enables the lender to verify your address and identity.
When they call your landlord, they’ll probably ask questions such as:
- Is your tenant on time with rent?
- Has your tenant ever missed a rent payment?
- Does your tenant actually live here?
- How long has your tenant been renting?
In addition to this, the lender may use your landlord as a character witness. This is somewhat typical with certain auto loans, so if you’ve been a good tenant, there’s no reason to worry.”
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