Verification of employment is an important process in getting your mortgage. Verification of employment is in the form of written and verbal verification. This is done to find out the borrowers stability and the source of income to be able to repay the loan.
When you submit your loan application, you would be required to give your employment history for the last two years. The lender or the mortgage company will then send a written verification of employment to your current and previous employers. The employers will fill out the details of your position, the period when you worked for them and a breakup of your salary and compensation plan. This has to be filled out by an authorized person.
Once the mortgage company receives the verification of employment from all your employers of last two years, including your current one, the information is compared to what you have filled in the loan application and with the income documentation you have submitted. This is to ensure that you have given correct information.
Once the mortgage has been approved and you have signed the relevant papers, the mortgage company will then do a verbal verification of employment with your current employer. This is to ensure that you, as a borrower, have not stopped working for the employer from the time you loan application was submitted as the terms and conditions of the loan will change taking that into view.
Verification of employment for self employed people is different. Self employed people have to furnish a current business license and that is not possible then they have to submit a letter from their certified public account who would require to write that he / she has firsthand knowledge of being assured continued employment as the person’s tax preparer.
Mortgage companies are more conducive to give loans to people who have worked in the same place for two continuous years. A loan application can not be processed till the verification of employment has been conducted.
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