Finder makes money from featured partners, but editorial opinions are our own. Advertiser Disclosure

Verification of employment letter template and guide

Speed up your home loan application by making sure your lender has everything they need.

Avatar
Belinda Punshon
Updated
Fact checked

A verification of employment letter is a document provided by your employer that confirms your current employment status and income. Some lenders will need to verify your employment when you apply for a mortgage, line of credit, lease or loan.

Download this template as a:

Why does my lender need a verification of employment letter?

When you apply for a mortgage, the lender will need you to supply evidence of your employment status and income. This information is needed to verify that you earn sufficient income to make the monthly mortgage payments without enduring financial hardship.

The bank may need to verify your employment to ensure that you are unlikely to default on the loan.

What needs to be included in the letter?

It’s a good idea to check with your lender to find out if they have any specific requirements. The letter will generally need to include:
  • Employer information. Most lenders require your employment letter to be issued on an official company letterhead that contains the company’s name, address, logo and contact details.
  • Employment status. The letter should contain information about your employment status, including how many hours you work, your position title and how long you’ve been employed.
  • Financial information. The letter should state whether you’re an hourly or salaried employee, how much you make and if you get bonuses.
  • Date and signature. Make sure the letter is dated and signed.

What does a verification of employment letter look like?

Company name (official letterhead)

123 Working St.

New York, NY 10005

08/30/2019

To whom it may concern,

I am writing this letter to verify that Laura A. Baxley is currently employed with XYZ Pty Ltd as a Digital Marketing Manager. She has been employed with us since March 2016.

Laura currently works on a full-time basis, averaging 40 hours per week. She earns a salary of $65,000 per year, paid biweekly, plus potential yearly bonuses.

Should you have any questions, please do not hesitate to contact me at (123)456-7890

Kind regards,

(SIGNATURE)

Justin Hamilton

Human Resources Manager

XYZ Pty Ltd

Will all lenders require a letter to verify my employment?

No, but most lenders will require some sort of verification. Aside from a letter, your lender may call or email your employer or give you a form for them to fill out and sign.

What if it’s a phone call?

If your lender lets you know that they’ll be calling your employer to verify your employment, let your boss know to expect the call. It’s also a good idea to ask your employer if they need any information from you and thank them for helping you.

Can I provide my lender with a faxed copy or does it need to be the original?

This will vary depending on the lender’s individual policies and eligibility requirements, but most lenders will accept a faxed copy of the employment letter.

How recent does the employment letter need to be?

Most lenders require the employment letter to be no older than 60 days from the date of receipt, but it can vary from lender to lender. If you have a letter that’s more than a couple of weeks old, ask your lender if you’ll need a copy that’s been signed and dated more recently.

Compare mortgage lenders

Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with basic property and financial details for personalized rates.
Name Product Loan products offered State availability Min. credit score ‎
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
See rates
More Info
Streamline your mortgage from quote to final payment — all from your computer or phone.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
See rates
More Info
Online preapproval in minutes and no origination fees with this direct lender.
loading

Compare up to 4 providers

Bottom line

Most lenders will want to verify your employment. This can involve getting a letter from your employer, having them fill out a form or having your lender call or email them. Whichever option they choose, the process is generally pretty simple.

If you’re just getting started researching the mortgage process, compare home loan lenders to find one that fits your needs.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site