How many times do mortgage lenders verify employment ?

Hey,

When you take a mortgage against the property, you are putting your immovable property as collateral. Though, banks and financial institutions allow people to put movable assets as security as well. Before the loan is approved, banks conduct mortgage employment verification to check the repayment capacity of the borrower. 

Usually, mortgage lenders and their team of experts verify the employment details of the borrower in the beginning of the mortgage loan application process. They do so by contacting the employer directly and by reviewing recent income documentation. 

Borrowers have to give authorisation to the lender to send an employment verification letter for a mortgage loan. The employer then releases employment and income information to the lender. There are many lenders that don't send a letter but rather simply make a phone call to the employer. 

For self-employed borrowers, the verification is given by obtaining tax return transcripts. 

Income information is included in the mortgage loan application. A stated annual income is used to make a preliminary decision on your application. The lender compares your earning to debt ratio. If the borrower has a regular stream of income and satisfactory credit, they will get preliminary approval from the bank. 

I hope you now have the answer to how many times do mortgage lenders verify employment. Calculate your loan EMI with a simple click. Check out the NoBroker EMI calculator today!

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