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Mortgage Guide

How to get a home loan

Easy guide to employment history for mortgage applications


Mortgage applications require 24 months of employment history. The stability and reliable flow of your income is a key factor in the decision making for approving your home loan.

What job information will you need for the mortgage application?

employment history for mortgage application

For each employer you have had in the past 24 months, we will need the following information:

  • Employer Name
  • Employer Address
  • Employer Phone Number (HR/Payroll Department number is the best)
  • Job Start Date
  • Profession Start Date
  • Position Title

We will order a verification of employment and income for your current employer and a verbal verification of employment for your past employers.

Verbal Verifications are required on every loan file within 10 business days of closing for an employed or self-employed borrower. We will verify that you are still actively employed prior to closing your loan file.

We also verify prior employers through the verbal verification process.

verbal VOE employment history

How to verify your current employment.

Lenders must verify your current employment using Fannie Mae’s Form 1005. We must send directly to your employer. Likewise, we must receive the completed form directly from your employer. Fannie Mae will not permit the borrower to hand-carry the verification form or have the lender send the form to the borrower to have it completed.

Documents you will need to verify your income:

  • 30 days of pay stubs
    • If your pay stub doesn’t include year to date income, we will need to order a Verification of Employment and Income.
    • If you are applying for a conventional loan and we received a full and completed verification of employment and income, we will not require pay stubs.
    • FHA always requires pay stubs even if we received the verification of employment and income.
  • Last 2 years of W2’s
    • If you are applying for a conventional loan and we received a full and completed verification of employment and income, we will not require W2’s.
    • FHA always requires pay stubs even if we received the verification of employment and income.
  • Last 2 years of Federal Tax returns - Signed
    • All schedules, all pages
    • Required for self-employed borrowers
  • Last 2 years of Business returns - Signed
    • All schedules, all pages
    • Required if you have 25% ownership
  • Job Gap Letter
    • Required with any gaps within the 24-month history

Job Gap Letters are important.

We will need a detailed letter of explanation explaining why there was a job gap between your 24-month employment history. If the job gap is within the 24-month employment history, we will need to verify your previous employer.

However, having a job gap isn’t a deal killer. There are reasons for everything and there are a lot of reasons why you would have a job gap such as maternity leave, mental health break, or even for travel prior to starting a new job.

Please note that although we require a 24-month history of employment, it doesn’t need to be continuous 2-year employment.

Questions? We’re here to help!

At NewCastle Home Loans, we’ve made the online mortgage application process as easy as possible. But if you ever have a question during the process or want to know more before you get started, feel free to give us a call at 855-610-1112.

Apply Now!

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