People are often overwhelmed by the amount of paperwork involved when applying for a home mortgage. Even more disconcerting is the fact that you have to provide that lender with your bank account, Social Security number, tax documents, and other highly sensitive personal information. Obviously, this isn’t the kind of information that you want just anybody having access to – only those that require it for processing your mortgage. So it begs the question “How safe is the information I’m providing lenders?”
Why do Lenders Need so Much of Someone’s Personal Information?
Due to the housing crash that occurred a little over a decade ago, lending standards have gotten stricter, hence the reason for lenders being so meticulous about your information prior to approving a home mortgage loan. Before a lender decides to grant you a loan, you’re required to prove your financial health. Consequently, this is the only way they can be assured that they’re making the right decision and that you are able to repay the loan comfortably. If you need any assistance through the process, we are available to assist you.
What Can You and Your Lender Do to Protect Your Information?
Since you’re required to provide such sensitive information, there 2 things that you can do and three things that your lender should do to ensure that your data is protected from cybercriminals and identity thieves.
What the borrower can do:
- Don’t answer suspicious e-mails
- Don’t attach any personal information in e-mails
What the lender should do:
- Information should be stored safely
- Make sure any information sent to 3rd parties is secure
- Tell the borrower how their information will be used
Buy a Home in Stockton with HOME Lending
Most information sharing is done with those 3rd parties who are involved in the closing process. For instance, lenders are required to share your information with the 3 major credit bureaus – Equifax, Experian, and TransUnion – to obtain your credit report. But they may want to share your information with certain companies that offer products you might have an interest in. If any of your information is used for promotional or marketing purposes, the lender is required to inform you of that usage.
Be sure to ask the lender what they do with your mortgage documents once the loan is paid off. Unfortunately, we now live in an era where we must be extremely careful about our activity while using the internet. We will be glad to help you with the information that you seek or answer your questions. To learn more about how your information is being used, stored, or disposed of, contact H.O.M.E. Lending today at (209) 477-0262.