What Is Verification of Mortgage: VOM
A Verification of Mortgage, also referred to as VOM, is a mortgage documentation of a mortgage loan borrower’s overall mortgage payment history, especially with a strong emphasis in the past 12 months, that is required when a mortgage loan applicant applies for a new mortgage, whether it is a refinance mortgage or other properties such as a second home, or investment home. The reason a verification of mortgage, VOM, is required by mortgage lenders is so the mortgage lender that is processing and underwriting a mortgage loan applicant’s mortgage loan application can verify the existing mortgage loan balance, the monthly balance, the payment history for the past 12 months, and to see if the mortgage loan borrower had any late payments in the past 12 months. A verification of mortgage is an extremely important document that is required for homeowners who are going through a refinance mortgage and one of the main factors why verification of mortgage is required is because is provides the financial responsibility of the mortgage loan borrower and shows that the mortgage loan borrower is capable of paying their monthly mortgage payment and has shown it by their past 12 months payment history.
Why Do Lenders Want Verification Of Mortgage
Most folks who apply for a refinance mortgage need to provide a verification of mortgage to the new mortgage lender who is processing and underwriting their new mortgage loan. A verification of mortgage form is normally provided to the existing mortgage company who the mortgage loan borrower has their current mortgage loan with by the mortgage company that the mortgage loan borrower is applying for their new mortgage loan. One of the key questions that the current mortgage lender needs to check is the question where it asks if the mortgage loan applicant has been making timely payment for the past 12 months. You cannot have been late in the past 12 months on your mortgage payments to qualify for a new mortgage loan. One time 30 days late payment on your mortgage payment may be allowed by certain mortgage lenders, however, the majority of mortgage lenders will not allow any 30 days late payments in the past 12 months.
Non-Traditional Home Purchase
If you purchased your home via seller financing and/or had other non-traditional financing to purchase your home and are now refinancing your mortgage loan, a verification of mortgage will still be required. 12 months canceled checks which was paid to the mortgage note holder or hard money lender will need to be provided. No late payments in the past 12 months will be required. The only way to provide verification of mortgage is by providing 12 months canceled checks. Cash payments do not count even though the mortgage loan note holder provides a paid receipt. If you have been making your housing payment with cash some months and checks other months, that will not count as verification of mortgage and you would need ot have to wait until you have 12 months canceled checks.