Tuesday, November 18, 2008

Why Does a Lender Want My Mortgage Statement?

Q: If someone owns a house and is buying another one, why does a lender sometimes want to see the mortgage statement for the buyer's current property? I thought the mortgage payments would be listed on the credit report.

A: The underwriter is looking to see if the homeowner's insurance and property taxes are included in the monthly payment. There is no way to tell from a credit report if the taxes and insurance are included in the amount reported to the credit agencies. If they are not, then they have to be added to the monthly payment to get the correct debt-to-income (DTI) ratio.

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