To obtain employment verification for a mortgage loan application, borrowers must provide recent pay stubs (typically covering 30 days), a written employment letter from their employer, and tax returns or W-2 forms. Lenders may also request direct verification via phone, email, or a third-party service like the Social Security Administration (SSA) or the Internal Revenue Service (IRS). The borrower should contact their mortgage lender to confirm specific requirements, as guidelines vary by lender and loan type.

Employment verification is critical to ensure the borrower’s stability and ability to repay the loan. According to the Urban Institute (2022), 15% of mortgage denials occur due to employment verification discrepancies, underscoring the need for accuracy. Lenders use this process to assess income consistency, which is a key factor in underwriting decisions. For example, Fannie Mae and FHA require employment verification to confirm the borrower’s job title, salary, and tenure. A 2021 Federal Housing Finance Agency report found that 70% of lenders prioritize direct employer confirmation over self-reported data to mitigate fraud risks. Additionally, the Consumer Financial Protection Bureau (CFPB) emphasizes that employment verification helps lenders comply with the Equal Credit Opportunity Act (ECOA) and Truth in Lending Act (TILA), ensuring fair lending practices. Errors in employment details can delay closing or lead to loan rejection, as seen in a 2023 MBA report where 22% of applications with incomplete verification faced processing delays. Thus, thorough employment verification safeguards both lender risk and borrower credibility in the mortgage process.