When you apply for a mortgage, underwriters will comb through your finances to determine if you’re a good candidate for a loan.
This includes verifying a lot of personal information, including your income, assets, credit history, and employment.
When You Apply for a Mortgage You’ll Provide Employment Information
- First you simply input your employment information
- Including job position and time on the job
- Along with your salary and any overtime/bonuses
- This is later verified with financial documents and verification of employment
During the initial stages of the home loan process, you’ll simply input or tell the bank or broker what you do for a living, how much you make, and how long you’ve done it.
As a rule of thumb, mortgage lenders generally want a minimum of two years in the same position or line of work.
This shows them a history of earnings, that you have consistently been employed, and have the ability to maintain employment, all of which are important to ensure timely mortgage payments are made in the future.
Once your home loan application arrives at the underwriter’s desk, they’ll dig into the details a bit more and connect all the dots.
What Happens When Lenders Verify Employment?
- Underwriters need to know that you’re actually employed and working in the position and industry stated on the loan application
- They verify this information by calling your employer or scanning a database
- Typically early in the home loan process and at closing
Typically, a written VOE is only necessary if using overtime and bonuses, otherwise you can often get away with a verbal VOE.
Make Sure You’re Employed During the Entire Loan Process!
Underwriters will be able to decision your home loan with confidence, knowing you’re able to make payments and satisfy repayment of the loan.
By taking the time to verify employment, lenders can cut down on fraud and also ensure that only creditworthy borrowers are approved.
By creating fake business names with real addresses, phone numbers, and personnel, fraudsters can sometimes circumvent these rules. They even create fake pay stubs to go along with it.
In summary, employment is a key piece of the underwriting pie and is essential to qualify for a mortgage. Be sure your work history can be verified to ensure success when applying for a home loan.
Contact us today to start your loan process!
