What Is a Verification of Mortgage and What Does It Show?

What is a Verification of Mortgage (VOM)?

A Verification of Mortgage (VOM) is an official document provided by a mortgage lender that details a borrower’s mortgage account status and payment history. This document serves as a comprehensive record of the loan, confirming the existence of the mortgage and outlining its key terms. Its primary function is to offer an independent, third-party confirmation of a borrower’s mortgage obligations and their adherence to payment schedules.

Financial institutions, landlords, and other entities frequently request a VOM to assess an individual’s financial reliability. For example, a VOM is commonly required when applying for a new mortgage, refinancing an existing loan, or seeking approval for other types of credit. It is also often requested by landlords during the rental application process to verify a prospective tenant’s housing stability and payment habits.

Information Included in a VOM

A Verification of Mortgage typically includes several specific data points that provide a thorough overview of the borrower’s mortgage account. The document will clearly state the borrower’s full name, the property address associated with the mortgage, and the unique loan number assigned by the lender. These identifying details ensure the VOM pertains to the correct individual and property.

Beyond identification, the VOM details the financial specifics of the loan. This includes the original loan amount, which is the total sum borrowed at the mortgage’s inception, and the current outstanding balance, representing the remaining principal amount owed. The interest rate applied to the loan is also specified, along with the regular monthly payment amount, encompassing principal, interest, taxes, and insurance (PITI). The document often indicates the type of loan, such as a fixed-rate or adjustable-rate mortgage.

A significant portion of the VOM is dedicated to the borrower’s payment history. This section outlines whether payments have been made on time, notes any instances of late payments, and often specifies the number of days past due for any missed payments. The VOM serves as a formal statement of account, often including the date the loan was originated and its projected maturity date.

How to Obtain a VOM

Obtaining a Verification of Mortgage typically involves a direct request to your current mortgage servicer. The servicer is the company responsible for collecting your mortgage payments and managing your loan account. Most servicers offer several methods for requesting this document.

Common methods for requesting a VOM include utilizing the servicer’s online portal, where many offer a dedicated section for document requests. Borrowers can also contact their servicer via phone to speak with a customer service representative who can initiate the request. Additionally, a written request sent through mail is often an option, though this method may take longer to process.

Once the request is submitted, the timeframe for receiving the VOM can vary, but it typically ranges from a few business days to approximately two weeks. Some servicers may charge a nominal fee for providing a VOM, which can range from around $15 to $50, depending on the urgency of the request or the servicer’s specific policies. It is advisable to inquire about any potential fees and the estimated delivery time when making the request.

Importance of a VOM in Financial Transactions

The Verification of Mortgage holds importance across various financial transactions by providing objective proof of a borrower’s mortgage standing. New lenders frequently rely on a VOM when assessing an applicant’s creditworthiness for additional loans, such as a second mortgage or a personal loan. This document helps them determine the applicant’s capacity to manage more debt by reviewing their established payment history.

Landlords utilize VOMs to verify the financial stability of prospective tenants, particularly when considering high-value rental properties. The VOM offers a clear indication of how consistently an individual handles a substantial recurring financial commitment, which can be a strong predictor of their reliability as a tenant. Other financial institutions, including those offering lines of credit or business loans, may also request a VOM as part of their underwriting processes to gain a comprehensive view of an applicant’s overall financial health. The VOM provides an external, verifiable record that complements credit reports and income statements, ensuring a more complete financial assessment.