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Unformatted text preview: . The applicant can do this by writing a source of funds letter. A sample of such a letter will be given later. In item 1 2a, the institution is asked to give any additional information that may aid the lender in determining the credit worthiness of the applicant. This should include information about loans that have been paid in full. The FHA/VA form entitled Request for Verification of Deposit, requests similar information as the Fannie Mae form, but once again the form is somewhat different. As with the employment verification form, the lender is required to certify that the verification was sent directly to the bank and that the form did not pass through the hands of the applicant or any other interested party. Form 14-1: Request for Verification of Deposit Dynasty School (www.dynastySchool.com) 14-17 REAL ESTATE FINANCE 14-18 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 14: THE LOAN PROCESSING
MORTGAGE VERIFICATION AND/OR RENTAL VERIFICATION
If the applicant has made mortgage payments, the lender will wish to verify the type of mortgage, the original date and amount of the mortgage, and the payment record of the applicant. If the applicant and/or co–applicant have rented previously, the lender will verify with the landlord, rental agent, or manager of the property the dates of the rental period and the manner of payment of the applicant or co–applicant. CREDIT VERIFICATION
The credit of an applicant is verified by the lender by ordering a credit report from the local credit reporting agency. The report will give the applicant's payment history on accounts or loans held by members of the credit– reporting agency. By federal law, the applicant and co–applicant are not allowed to view their credit reports furnished to the mortgage lender. It should also be noted that if the lender rejects the application and it, along with all of the supporting data, is transferred to another mortgage lender, the credit report may not...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10