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One of the most critical parts of the mortgage process is employment verification. This step can make or break your loan application process, so it’s essential to understand what it entails and how to navigate it successfully. This guide will take you through everything you need about employment verification for a successful loan experience.

What is a Mortgage Verification of Employment?

The verification of employment for mortgage is a process in which a lender verifies a borrower’s income and employment status. This verification process aims to ensure that their monthly mortgage payment will be manageable, considering their monthly debt to income ratio (DTI).

The mortgage company will also ensure that there isn’t any red flag regarding your work history. This means they’ll want to know if you’ve been fired or laid off from your current job and how long ago since then. 

The Importance of a Verification of Employment for Mortgage

The verification of employment mortgage is a necessary process that must be completed before applying for a mortgage. You must provide the lender with detailed information about your current and previous employment. 

If a gap in work exists, it’s critical to include details surrounding this period to ensure it won’t negatively affect your ability to qualify for a loan. Lenders require this information because they want assurance that you have enough income from work every month. 

This ensures you can repay any credit lines taken out on your behalf by purchasing real estate property. If there isn’t enough money coming into your household each month. Then it would be impossible for you to make monthly payments on top of all other expenses.

How Do Mortgage Lenders Verify Employment?

The most common way mortgage lenders verify employment status is by checking your pay stubs. If you’re self employed or work on commission, ask your employer if they can provide a copy of your last two years of W-2 forms.

A mortgage lender verifies work by checking a borrower’s credit score and report. This will tell them whether you have been making all payments on time and how much debt you currently have outstanding.

How Long Does it Take for a Mortgage Lender to Verify Employment?

Some lenders have strict requirements to verify employment. You may be required to provide documents such as a tax return, W-2 forms, pay stubs, and bank records. If you are self employed or a contractor. Then this can be more difficult and time-consuming than to verify employment if you are an employee at another company.

To avoid complications during the mortgage loan approval verification process, it is a good idea to inform your HR department that you’re in a loan processing situation. This way, they can help facilitate any paperwork the mortgage lender requires when verifying employment.

The Process of a Mortgage VOE

Verification of employment mortgage simply means you have to prove that you’re employed. If you don’t have a verified job. Then this is when your lender will ensure your monthly income and current job are on the up and up.

As borrowers, knowing how this mortgage process works is essential so you can prepare with all of the necessary documentation before they ask for it. To verify a mortgage VOE, you should know these steps:

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1. Get a Pre Approval

Before beginning the mortgage employment verification process, getting a pre-approval letter from your lender is essential. A pre approval letter will give you an idea of how much money you can borrow based on variables. This may include credit score, earnings, and debt to income ratio. 

Once you have all the information required for this step, it’s time to gather proof of work. Getting pre-approved means the lender determines what type of loan they are willing to offer based on your financial situation. However, no funds will be committed at that time until there has been an actual home loan application submitted and approved by both parties.

2. Begin Your Loan Application

The second step in the process for mortgage employment verification is to start your loan application. Initiating your application as soon as possible is vital to completing your closing on time.

Once you begin your loan application, it will allow you to gather information about yourself. Also, you may provide additional documents for income, such as bank statements, paycheck stubs, and tax statements. This is how lenders can figure out if they can approve you for a particular type of loan or not. This will also give them an idea of how much monthly payment would be required.

3. The Lenders will Review and Process Your Application

A loan officer will review and process your loan application on the third step of mortgage employment verification. Lenders will verify income, assets, and liabilities to ensure that you can make payments on time. 

Lenders will also check your credit score to determine any potential risk in lending you money. A lender may also request that they perform a background check on you and ask for references from your friends or business associates.

4. The Underwriter will Examine Your Requirements

After the lenders review and process your application, the underwriting process will examine your requirements for mortgage verification of employment. The underwriter is responsible for verifying employment information such as: 

  • Income
  • Work history
  • Current job position
  • Any gaps in previous work

Similarly, the underwriter will examine past and current year tax returns to ensure that all information is consistent with what was provided on your application. In addition, they will also verify if you hold a business license and if it has been issued correctly by state law.

5. Loan Approval

Once the lenders find your requirements valid, your home loan will be approved. The lender will then submit a funding request to the underwriter for approval. Once approved, it is disbursed to you and closed in an issuance process.

Verification for Self Employed Borrowers

The employment verification process for self employed borrowers differs slightly from salaried workers. Instead of providing pay stubs from your employer, you will likely be asked to provide a detailed financial statement and tax return. Here’s what you can expect:

Prove the Lenders that You Have a Stable Income

For self-employed borrowers buying a house, you must prove you have stable employment and income information to lenders. This will help mortgage lenders verify employment and give them the confidence to trust you with their money. When it comes to showing the lender proof of work, there are several options available:

  • A copy of your company license and other documentation indicates your business is operating legally.
  • Copies of business bank information.
  • Copies of tax returns with all schedules and attached W-2s.
  • A CPA letter stating they know your business’s financial situation.

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Provide Bank Statements to the Lenders

You should also provide bank statements to lenders for employment verification for mortgages. Bank records are generally accepted as proof of income. 

However, be aware that different banks have different requirements for opening accounts, even if you’re already approved for an account at another bank. If you have multiple credit cards with balances on them. Then bring those in so they can verify the balances and amounts owed against your name.

You Should Have an Excellent Credit Score

These lenders will also look at your credit score for employment verification for a self employed borrower. It can be challenging to prove that you consistently work the same hours and make enough money to cover your monthly expenses.

You may have a history of paying bills on time, but this doesn’t necessarily mean you have a stable or reliable income stream. Your lender needs to know that you can pay back what you owe when they lend money to you to purchase a home. 

They can do this best by looking at your payment history with other creditors. This includes utilities, credit cards, and any late payments or defaults on the previous loan.

In Case Your Employer Refuses to Give You Employment Verification

If your employer refuses to provide a letter of employment verification. In that case, you have no choice but to contact the employer or HR department. You may also ask them if they can fax a copy of your W-2 form directly to the lender. 

However, it is up to the employer whether or not they’ll do this for you. And suppose all else fails and your employer refuses to give an employment verification letter (or something similar). In that case, it’s time for you to find a new job. 

You may also consider any government loans, such as a VA loan. Or if you’re one of the heroes (firefighter, military, EMS, etc.). Then you may qualify for the homes for heroes program and enjoy its benefits, such as down payment assistance.


The verification of employment mortgage is an integral part of the lending process in the mortgage industry. When applying for a loan, you must provide proof of employment and income information to show you have a steady job and can repay your loan. 

The most common types of employment verification are paycheck stubs and W-2 forms. These documents help demonstrate that you have worked at your current job for at least three months before applying for a mortgage loan.

If you are interested in buying homes but don’t know where to start, we at HOMES by ARDOR can help. We specialize in helping people find great homes and provide expert advice every step of their home-buying journey.

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