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Mortgage Documents – Letter Of Employment 📝

The Letter Of Employment is a common document requested by Mortgage Professionals and Lenders.  We request this document for borrowers who are either salaried or earn an hourly wage.

The letter has a few requirements to be accepted by a lender and/or mortgage default insurer.

👉 Letterhead – The letter must be written on company letterhead
👉 Guaranteed Hours – The letter must state the guaranteed hours per week worked by the borrower.  If the borrower’s hours are not guaranteed and the letter uses terms like “works an average of ______ hours per week” or “works up to _____ hours per week”, more documentation will be required.
👉 Position – The letter must state the borrower’s position.
👉Start Date – The letter must state the borrower’s start date
👉Remuneration – The letter must state the borrower’s hourly rate or salary
👉Authorization – The letter must have the Manager/Supervisor/HR author’s signature and direct phone number for verification.
👉Date – The letter must be dated within 30-60days

⚠️If the letter states that the hours are NOT GUARANTEED, we will then ask for the most two recent years of T4 statements and use either the two-year average or the most recent year’s income (if lower than the previous year).
⚠️In this case, we will also confirm the current YTD – Year-To-Date Gross Earnings to confirm that the borrower is on pace to earn the income amount allowable.

🔎What do we look for🔎
✅ We will search for the company on Google to ensure it exists and view its website if applicable.
✅ We will do our best to verify that the person who signed the Employment Letter works for that company.
✅ We will also do our best to confirm that the employee isn’t related to the owner of the company or has ownership in the company themselves.

The property verification of documents that we do upfront can save the borrower and their REALTOR a lot of stress.  Lenders and regulators are developing new techniques and embracing new AI technology to identify misrepresentations in mortgage documentation.

Having a perfect documentation package is very satisfying to a mortgage broker!

We hope that we can help you with your next mortgage!