Do mortgage lenders spot check documents or ALWAYS verifiy ALL tax documents provided in an application? Under what circumstances do they verify?
2007-02-28 15:01:28 · 6 answers · asked by jcowens2000 1 in Business & Finance ➔ Renting & Real Estate
they are required to do "due diligence". If your W-2s, 1040, and bank statements all appear to tell the same story, they won't look further, If something looks out of place, not necessarily suspicious, you may be required to provide firther documentation. Always be honest because if you submit bogus documents and the lender finds out later, you can be sued for contract fraud, or forced to agree to a rate increase that is in line with your true figures.
2007-02-28 15:09:37 · answer #1 · answered by David G 1 · 0⤊ 0⤋
They will verify everything unless your credit score is good enough. If your credit score is good enough you could qualify for what is called a no doc loan. The way I have been told it works from bankers is that if a persons credit score is good enough say over 700 or so that their credit proves that they know how to handle money. Thus, they just need to know how much you make and go off of that. They don't have to have old W-2's.
2007-02-28 23:07:04 · answer #2 · answered by Michael H 3 · 0⤊ 0⤋
Yes they do verify, I soldhouse for7 years and the 1st thing they check is your credit report and the bank or morgage company verifies your w2, they have to as your only going to be approved on what you make and only a persentage of what you make deternmines how much you are able to afford, based on what they figure you have left after normal things a person has to pay on a monthly basis.
2007-02-28 23:10:13 · answer #3 · answered by novi1679 1 · 0⤊ 0⤋
It seems as though a person has something to hide who would ask such a specific question.
For instance, why would you want to know how often tax and W-2 information is verified, if your not trying to find a window of opportunity.
~Just a thought.
2007-02-28 23:08:22 · answer #4 · answered by chvwkn 2 · 0⤊ 0⤋
Banks request W-2 but also request a verification of employment. They will call the day before closing to make sure you still work there and how much you are making.
2007-02-28 23:05:16 · answer #5 · answered by TP2001 2 · 0⤊ 0⤋
They verify every document and every debt to the penny.
2007-02-28 23:03:47 · answer #6 · answered by Mommyk232 5 · 0⤊ 0⤋