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VOR from landlord now requesting 12 months cancelled checks.

I was conditionally approved for my first home. I meant all the conditions some of which were verbal and written verification from our landlord. went to UW today. I received an email at the end of day from the loan processor saying the underwriter now wants 12 months cancelled rent checks. My first question is is this normal? And I don't have a full 12 months of cancelled rent checks so now what?
  • July 24 2013 - US
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Answers (6)

Profile picture for leeuga11
Go to your bank, they should have copies.  If you paid in cash you may have to get the landlord to write a letter documenting the payments, it may have to notarized and all that good stuff.

And yes. this is normal.

Good Luck with your new Home!
  • July 25 2013
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Normally VOR should work in lieu of 12 months cancelled check but if it is not up to the lenders' satisfaction then checks are mandatory. Most importantly it all depends borrower's overall credit (active trade lines), mortgage product and program, lenders' underwriting overlay and their investor's selling guidelines. Portfolio lenders may ease this.
  • July 25 2013
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This is pretty standard if you are renting from an individual and not a property management company?  Can you show them bank statements where the amount for the rent was withdrawn?  This may be the way you will need to go if you paid with cashier's check, money order, or with cash.  The withdrawal amount will need to be consistent with the rent amount.  Talk with the loan processor and be candid with them about how you pay rent.  They can then get you an exact answer on what the underwriter will require of you in lieu of 12 months cancelled rent checks.
  • July 25 2013
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Yes this is normal, I use to work for a large lender as a processor before becoming an originator. It is to verify that you make the payments in a timely fashion since you do not have a current mortgage and the UW cannot account if there were any late payments etc. because it doesn't show up on the credit report.

If you pay by cash, it cannot be paper trailed unless your bank statements show a consistant amount for rent being taken out for the exact amount of the rent.

If your landlord gives you some sort of paid reciept that would be helpful as well.

Just keep in mind when the investor reviews your file they need to see that you pay on time and the amount you pay matches the stated amount on the lease agreement. They can't just go by word of mouth. everythign needs to be papertrailed.

Good luck!
  • July 25 2013
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If it wasn't cancelled checks then how was it paid?  Will your bank statements show that money coming out each month? 
  • July 25 2013
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It is normal when the landlord is not a management company. Assuming you paid by check, then you should be able to receive the cancelled checks by your bank .
  • July 24 2013
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