Securing a mortgage is a critical aspect of the buying process for most homeowners, but getting the seal of approval isn’t easy. Lenders consider employment as one of the most important factors when assessing loan applications. And while it’s not a hard-and-fast rule, most mortgage brokers or lenders will verify your employment by speaking with your employer. Here is the information they request and what to do if your employer refuses to verify employment or you do not work a traditional nine-to-five.
What do mortgage lenders ask when they speak with my employer?
Lenders are usually most interested in confirming your position, work history, and salary when they reach out to your employer. Sometimes they also inquire about the likelihood of your continued employment to ensure that you have stable work lined up in the future.
Employment verification refusal
Sometimes employers refuse to verify employment, but don’t worry – while this is a frustrating experience, it is not necessarily one which will quash your application. The first step is to reach out to the HR department if your employer has one and explain that you need verification, as they might be able to work directly with your employer. You might also consider speaking with your employer about why they are refusing to help. Sometimes state laws prevent them from confirming, at which point finding a broker or lender familiar with your state’s laws might be the next step.
Self-employment verification
Confirming your employment status as a self-employed individual is often surprisingly straightforward. Many lenders will request a “Transcript of Tax Return,” also known as Form 4506-T, which allows them to communicate with the IRS and receive a copy of your tax returns directly. You might also need to work with a certified public accountant (CPA) to confirm your income.
Are you interested in learning more about how your employment impacts your mortgage approval as well as what you can do about it? Reach out to a mortgage broker Vancouver WA!