Verification of Rent

[victornewman]

I am not certain that I will be asked to provide verification of rent but just in case I want to prepare myself.  I will be applying for a mortgage 2 months from now.

I have perfect rental history but I rent from an individual that lives in another country.  Obviously I cannot send them a check but they still have an account at the same bank I use,  so I transfer the rent each month from my account to theirs. That was the agreement when I signed the lease several years ago.

Actually, I go into the bank and the branch manager does the transfer for me.

The transfer is marked "rent" each month.  Would this satifsy an underwriter if rental verificiation is requested?  Do underwriters generally require rental verification if mortgage scores are over 760 and DTI is super low?

[NC_Mtg_Loaner]

You are likely fine. 

VOR's are more common if there is the possibility of "payment" shock, but if you can show 12 on-time transfers you are likely to be ok if it's requested.

[homeloanexpert]

A VOR (verification of rent) isn't always necessary. The AUS (automated underwriting system) will determine that and based on your credit scores, most likely not. If in fact you need to provide your lender with a VOR, you can provide either 12 months bank statements or run a filter and that shows your payment history. But I really wouldn't worry. Let me know if you have any questions.

Best wishes to you!

[Anonymous]

I have a question for VOR. I rent part of a house that was turned into a duplex. We don't necessarily have a lease but we do have an agreement that i pay rent by the 4th of every month and if i am vacating I need to give 2 months in advance. I pay my rent in person with cash. When i'm in the market for a house will this hurt my chances of getting verification or would a letter from the homeowner satisfy?

Sorry OP to steal your post. 

Michael

[homeloanexpert]

Again, hopefully you won't need to provide a VOR. But if a VOR is required by the lender, then you paying cash can be a problem. These methods of proof are exceptable:

1.) 12 months canceled checks or money orders.

2.) If paid direct auto debit, a print out of the activity or worse case, 12 months bank statements.

3.) Verification by 3rd party Management Company.

4.) If you can't verify your rental history by any of the above methods, the only thing that will work is you're leaving with relatives and can get them to provide a letter stating you live rent free along with the timeline.

[victornewman]

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@homeloanexpert wrote:

A VOR (verification of rent) isn't always necessary. The AUS (automated underwriting system) will determine that and based on your credit scores, most likely not. If in fact you need to provide your lender with a VOR, you can provide either 12 months bank statements or run a filter and that shows your payment history. But I really wouldn't worry. Let me know if you have any questions.

Best wishes to you!

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Thank you for your reply and the info