Chapter 22: Mortgage
IN THIS LESSON
What is it?
"Mortgage supplemental verifications" typically refer to additional checks and documents that a mortgage lender may request during the mortgage application process. These supplemental verifications are often required to ensure the borrower's financial information is accurate and complete. Some common examples of mortgage supplemental verifications include:
Employment Verification: Lenders may request additional documentation or verification of your employment to confirm your income and job stability. This could involve providing recent pay stubs, W-2 forms, or contacting your employer directly.
Asset Verification: Lenders may require further proof of your assets, such as bank statements or investment account statements, to verify that you have the necessary funds for the down payment and closing costs.
Gift Letters: If you're receiving a financial gift from a family member to help with your down payment, the lender may ask for a gift letter that confirms the source of the funds and states that it's a gift and not a loan.
Explanation Letters: You may need to provide letters explaining any significant financial changes, discrepancies, or issues in your credit history, employment history, or other aspects of your financial situation.
Additional Credit Checks: Lenders may perform additional credit checks or updates to ensure your credit profile hasn't significantly changed since your initial application.
Appraisal Review: If the initial property appraisal raises concerns, the lender may request additional appraisal reviews or inspections.
These supplemental verifications are part of the lender's due diligence process to minimize risk and ensure that the mortgage applicant is qualified to repay the loan. It's important to be prepared to provide these documents promptly when requested to keep the mortgage application process moving smoothly.
