What is a Verification of Employment VOE when buying a house?
Buying a house involves many moving parts, and one of the most critical pieces is proving you can afford the mortgage payments. That's where a Verification of Employment (VOE) comes into play. I'll walk you through everything you need to know about this important document and how it affects your home buying journey.
Verification of Employment (VOE): A document used by mortgage lenders to confirm a loan applicant's employment details directly with their employer. The verification includes current employment status, income information, and length of time with the company to help determine if the borrower qualifies for a home loan.
Understanding the VOE Process
Your lender will request a VOE at different stages of your mortgage application. You'll typically see this happen during pre-approval, which helps determine how much house you can afford. Another verification occurs right before closing to make sure nothing has changed with your employment status.
The VOE checks several key pieces of information about your job:
Your current employment status and position
How long you've worked for your employer
Your salary, including base pay and other compensation
The probability of your employment continuing
Types of Employment Verification
Lenders use three main methods to verify employment:
Written VOE
This traditional method uses standardized forms that your employer fills out and returns to the lender. The forms require official signatures and detailed employment information.
Verbal VOE
A lender calls your employer directly to confirm your employment details. This usually happens close to closing as a final check.
Digital Verification Services
Many lenders now use online platforms that can instantly verify your employment and income through payroll providers.
Common VOE Challenges and Solutions
Self-employed? You'll need different documentation, like:
Tax returns from the past two years
Profit and loss statements
Business licenses
If you've changed jobs recently or work multiple positions, prepare to provide extra documentation for each employer. Commission-based workers should have detailed commission statements ready.
Impact on Loan Approval
Your VOE directly influences whether you'll get approved for a mortgage. Lenders look for stable employment and consistent income. They might raise concerns if they spot frequent job changes or declining income.
Best Practices for Borrowers
Make the VOE process smooth by:
Informing your employer about the upcoming verification
Having pay stubs and W-2s ready
Staying at your job during the mortgage process
Being upfront about any recent or planned job changes
VOE in Today's Mortgage Landscape
Digital verification systems make the process faster than ever. Your privacy stays protected through secure data transfers and strict information-sharing protocols.
Common Questions About VOE
How often will my employment be verified?
Expect at least two verifications - one during pre-approval and another before closing.
What about employment gaps?
Be prepared to explain any gaps longer than 30 days with documentation.
Can I get approved with part-time work?
Yes, if you can show steady part-time income for at least two years.
Related Mortgage Concepts
Your VOE connects with other important mortgage factors:
Debt-to-income ratio: Your verified income helps calculate this crucial number
Income verification: Goes hand-in-hand with employment verification
Employment history: Most lenders want to see two years of steady work
Ready to Start Your Home Buying Journey?
Bellhaven Real Estate's team of experts can guide you through the VOE process and connect you with trusted mortgage partners. Contact Bellhaven Real Estate now to begin your path to homeownership with confidence.