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Banks can call your employer to verify employment for personal loans. But most banks will simply verify your income through a tax document or bank statement when evaluating your application for a personal loan.
VOE or Verification of Employment is a type of mortgage program where all of the verification is handled directly with the employer. If you're a salaried worker or a wage earner, this program could work for you as an alternate type of financing.
Every lender will perform income and employment verification before a loan goes through the underwriting process.
Most lenders conduct a verification of employment within 10 days before your loan closes, during which your current employer will be contacted to verify your employment.
Letter of employment example Dear [Name of Mortgage Lender], I am writing to provide you with a letter of employment on behalf of [Your Name]. [Your Name] has been employed by [Your Company's Name] as a [Your Job Title] since [Date]. [Your Name's] annual salary is $[Your Annual Salary].
Lenders often require mortgage borrowers or other loan applicants to supply two recent paystubs to verify their income. As rental and mortgage fraud continues to rise, submitting paystubs is one of the ways that would-be homebuyers are committing fraud.
Mortgage lenders verify employment by contacting employers directly and requesting income information and related documentation. Most lenders only require verbal confirmation, but some will seek email or fax verification. Lenders can verify self-employment income by obtaining tax return transcripts from the IRS.
Mortgage companies verify employment during the application process by contacting employers and by reviewing relevant documents, such as pay stubs and tax returns. You can smooth the employment verification process by speaking with your HR department ahead of time to let them know to expect a call from your lender.