What is a Verification of Mortgage and how to request it in 5 steps?admin
A Verification of Mortgage, also known as a VOM, is used to verify your existing monthly balance payments and to check for any late payments on the account. While reviewing a borrower’s loan application for a new mortgage, lenders should verify the payment history of a previous one.
All lenders want to see a borrower’s previous housing payment history.
For example, you just sold your house and are applying for a new mortgage – the lender request a VOE to see how timely you’ve been with your previous mortgage payments.
To qualify for a new mortgage, you should’ve made timely payments on your previous mortgage for at least previous 12 months.
Whether you’d like to refinance or apply for a loan to buy a second home or investment property – VOM is required in all cases.
But what happens if you miss your mortgage payment at least once?
Well, with one thirty-day late mortgage payment in the last 12 months, you may still be approved according to the automated underwriting system. Any delinquent payments on a mortgage in the previous 12 to 24 months, on the other hand, are a definite negative for borrowers.
Remember: Thirty-day late mortgage payments are one of the most damaging negative credit trade lines a borrower may have on their credit report.
A VOM will identify missed mortgage payments in the last 12 to 24 months.
How to request Verification of Mortgage?
Since your mortgage loan is more likely to be your most significant debt – paying and keeping track of this is essential for your financial security.
As we mentioned above – VOE will detail the terms of your loan agreement, such as rate, payment, length of the loan, amount, and full payment history.
Getting this document from your lender is easier than you may think. All you need to do is follow these five steps:
1. Get your most recent home mortgage statement, your mortgage loan account number, and the social security number (if you have a spouse – his/hers as well). To submit a mortgage verification request to your loan officer, you will need this information.
2. Make an appointment with your loan officer at your bank, credit union, or financing business. Requesting a mortgage verification in person may help to speed up the procedure.
3. Provide your loan officer with all of the documents mentioned in step 1, and request a mortgage verification. Don’t forget to request a complete payment history as well.
4. Once your lender has completed the mortgage verification, review it. Compare it to your mortgage statement, original mortgage agreement, and bank account information. Confirm that the outstanding balance, monthly payment, and mortgage rate are all correct.
5. If there are any errors in the mortgage verification, contact your lender straight away. Bring a copy of your bank account records to prove on-time payments if the document shows any false late payments on your payment history. Require the loan officer to fix any errors in mortgage verification.
If you have more questions about the topic – don’t hesitate to call us or schedule an appointment.