There are a number of things about rent payments that a lot of people wishing to buy a new home don't understand.

First, ones rent history is crucial to getting approved for a mortgage loan for their new home.

A person will often look at a new house and ask 'Can I get a mortgage?'. Yes they can if they qualify for the mortgage loan. And part of qualification may depend on how they have paid there rent in the past.

If a person's credit scores are high enough, then their rent history will probably not be an issue. However, if their credit scores are marginal or they have no previous credit history then their rent history will become important.

Here are some dos and don'ts pertaining to your rent payments:

* Never pay your landlord in cash, even if they give you a receipt. Handwritten receipts are not acceptable when applying for a mortgage loan.
* Always pay your rent on time.
* If you pay with a money order always keep a copy as a receipt.
* Keep at least 24 months of receipts or cancel checks

If you rent from a rental company, mortgage lenders will usually accept a rent letter or a verification of rent form from the rental company and you won't need your rent receipts previously mentioned. But, I would suggest that you keep those receipts anyway, just in case you need them.

Lates on your rent payments are a real no-no. Lenders will look at this and say if they can't pay the rent on time then they won't pay the house payment on time.

I recently had a loan applicant give me money order receipts showing her rent history. In sorting these receipts I noticed that for some months there were two receipts. When questioned about this she stated that she didn't have all the rent on the first of the month when it was due, so she paid the balance later in the month when she got paid again.

If the rent is due on the first of the month and it is not all paid at that time then it is still late, even if it is all paid within the month that it is due.

If you are in need of a bad credit mortgage loan then an excellent, well documented rent history is very important.

So, pay attention and be diligent with your rent payments and the bookkeeping associated with them. It will be a benefit to you in the future.