Tenants need to be prepared for a FORMS FEE for this process from their landlord...there are too many caveats from lenders - no e-mail verification/fax only, etc - so that many property managers and PROFESSIONAL landlords CHARGE for this service....I spent 15 minutes trying to log into a lender's website to PROVIDE a VoR....HELLO! LIGHT BULB MOMENT * e-mail or fax it to me and I WILL E-MAIL IT BACK and a COPY to my TENANT
The verification of rent is a vital piece of the mortgage qualification procedure. There have been many changes in the underwriting process for a mortgage. If you want to borrow money, you have to prove you have a satisfactory payment history. This applies to more than an application for a mortgage. It applies to applications for car loan, or credit cards.
In the mortgage process, it doesn't matter if it is a conventional mortgage, FHA mortgage, VA mortgage or USDA mortgage, it is most important to show on time payments for your housing. If you rent from an apartment complex, it can be documented with a verification of rent. These are the easiest forms of verification to obtain (in most cases).
If you rent from an individual, you must be able to document that payment history. Your landland's letter stating you are a good tenant and pay on time is not going to be acceptable. Ideally, payment by check is preferably, at minimum would be by money order. The worst is paying CASH. In some cases cash is king but not when we need to document a housing payment.
If you have been thinking about a home purchase, make sure you can document your rental payment history.
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Sr. Mortgage Consultant
Georgia Residential Mortgage Licensee #25839
600 Galleria Parkway
Atlanta, GA 30038
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The opinions and general information in this blog are soley those of Kathy Sheehan. Specifics regarding an individual case should be discussed in detail with a loan professional. For a confidential consultation, please feel free to contact me via phone or email. All terms and conditions are subject to change.