Why Are SSNs Important to Credit Checks for Mortgages?
- When applying for a mortgage, the lender sets out to do a credit check. In order to examine the right files, applicants provide their Social Security number. While there might not be many Abernathy Kellogg Figgenbottoms on file, if someone named Jack Smith applied for a mortgage, using the Social Security number helps make certain to examine the credit files for that specific Jack Smith. Ensuring the right Social Security number is on the mortgage application helps restrict identity theft. By making sure the person applying for a mortgage is the same person using that Social Security number, ensuring proper credit for mortgage payments and reporting to the credit bureau.
- The Social Security Number Verification Service verifies the Social Security numbers and the names of employees for businesses. The purpose of the SSNVS is ensuring employees get credit for wages and taxes paid and withheld. However, it is not lawful for someone to use the SSNVS for purposes other than reporting wages and earnings. Using the SSNVS to check someone's identity or financial information for credit checks or mortgage applications is not permissible under the SSNVS guidelines.
- There are times when no Social Security number is used when applying for a mortgage. For example, illegal immigrants are given an Individual Tax Identification Number. The ITIN allows the immigrant to pay taxes into the government system. They can do this even as they apply for legal citizenship status. While they wait to become citizens, the ITIN is used on any mortgage loan documents.
- Consumers should check credit reports every year. The Federal Trade Commission allows an individual to check his credit history once a year from each credit reporting agency. Examine the credit report completely for accuracy and thoroughness. Notify the credit reporting bureau immediately if any errors in reporting are uncovered. After the credit bureau fixes any errors, it sends an amended copy to the consumer, as well as provides an amended copy to any agencies or companies that requested a copy of credit report within the previous two years.
