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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?

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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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