 TITLE: Do Mortgage Companies Run Background Checks? CONTENT: What Lenders Review During a Mortgage Background Check\n------------------------------------------------------\nWhen processing your mortgage application, the lender will be on the lookout for any red flags that could suggest you're a risky borrower. Some important details include:\n*   **Your employment status**: Your mortgage lender will likely want confirmation that you've been steadily employed for at least two years. It isn't enough to simply provide your recent paystubs, though that's often required too. A mortgage lender may contact your employer directly to verify your work status. Things can be a bit more involved for self-employed homebuyers, who still need to prove a two-year history of uninterrupted income. Every underwriter is different, but you may be asked for additional documentation such as profit and loss statements or 1099 forms.\n*   **Your financial information**: Mortgage companies look at all sources of income. This can include money coming in from side gigs and alimony, as well as investment income in the form of dividends and interest. Passive income, like money generated from a rental property, will be considered as well. Be prepared to provide documentation to verify all income sources. Keep in mind that to qualify for a conventional mortgage, your new monthly payment will likely have to be at or below 28% of your gross monthly income.\n*   **Your criminal record**: Your mortgage lender may or may not choose to conduct a criminal background check. If they do, there unfortunately aren't any legal protections in place to prevent them from charging you a higher APR or denying your loan application due to past criminal activity. That said, many lenders are most concerned about an applicant's employment status, financial health and ability to repay their loan. If you meet all their lending requirements, having a criminal record may not be an issue. If you've recently been incarcerated, however, you'll have a gap in your employment history and income that could work against you. END