What Is A Verification Of Employment?
When you are applying for a mortgage, the lender will want to verify that you are employed where you say you are, for as long as you stated, and that you make what you claim.
Normally a Verification of Employment or VOE is done by both the processor for the mortgage broker and the underwriter for the lender. There is a simple form they fill out over the phone with some one who works in the Human Resources department of your office.
A verification of employment, also referred to as a VOE, can be done either verbally or through a form that is either mailed or faxed over to an employer. Some lenders require written VOE's and other lenders allow verbal VOE's. A VOE is generally required in addition to other normal income documentation, such as W2's, income tax returns, and pay-stubs.
If you are self employed there are other ways to verify your employment. One popular way is to have your Accountant provide you with a 'CPA letter'. The accountant can affirm that you are in fact self employed, that he has prepared your taxes for the past few years, and your average annual income.
If self employed, the easiest way to prove your employment is to provide a business license. In most instances you'll need to show that you have been licensed for at least 2 years.
Some verifications of employment require that all of the income values are filled in their
entirety, while other loan programs only require that the employment itself is verified, with no income values listed.
Depending on your lender, a VOE may or may not be required.
For some lenders, a recent paystub is all that's needed to verify employment.
verification of employment is the lenders way of making sure you are gainfully employed. this is what proves to them your ability to repay the mortgage
NINA NE loans require No Income, No Asset & No Employment verification at all, and can be an excellent option for people who have trouble providing verification of employment.
Mortgage Loan Documentation is a risk-based pricing factor that affects the overall interest rate an individual borrower will qualify for. Verification of Employment helps the lender price the loan at a lower rate.
Lenders will usually verify your employment the day of closing or the day before closing to make sure you are still employed.
Verification of employment is performed for the lender to help determine the financial stability of a borrower. This can be important in the lenders decision of the interest rate and loan amount to offer the borrower.
» DISCLAIMER: The information contained in this article on 'What Is A Verification Of Employment? ' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.
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