What is Written Verification of Employment and Why Is It So Important?
What Is a Written Verification of Employment (WVOE) and Why Is It So Important?
If you're applying for a mortgage, your lender will need to confirm that your income is both accurate and stable. One important step in that process is the Written Verification of Employment (WVOE).
What is a WVOE?
A Written Verification of Employment (WVOE) is a standard form completed by your employer at the request of your mortgage lender. It confirms important details about your job and income, including:
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Employment status (full-time, part-time, temporary, etc.)
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Dates of hire and (if applicable) termination
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Job title or position
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Compensation structure—salary, bonuses, commission, or hourly wage
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Year-to-date earnings
This form helps the lender verify that your income is stable and sufficient to support your mortgage payment.
A WVOE is a required step in the underwriting process. If your employer delays or declines to complete it, your loan approval could be at risk. That’s why we always recommend giving your employer a heads-up so they understand the importance and urgency of the request.
Why Do Mortgage Lenders Need to Verify Employment?
Lenders use your income to calculate two key debt-to-income (DTI) ratios:
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Front-end ratio: Compares your expected monthly mortgage payment to your gross monthly income.
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Back-end ratio: Compares all monthly debt payments (including mortgage, car loans, credit cards, etc.) to your gross income.
These ratios help determine whether your monthly budget can comfortably support the new mortgage payment—and ultimately, whether your loan can be approved.
When Does Employment Verification Happen?
Employment is typically verified early in the underwriting process and again right before closing. If you change jobs, experience a layoff, or if the lender has trouble confirming your job details, it can delay—or even jeopardize—your loan.
Common Challenges (and How to Avoid Them)
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Slow employer response: If your employer doesn’t return the form promptly, it could stall your mortgage process.
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Refusals or incomplete information: Some employers are hesitant to fill out forms or confirm future employment status.
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Last-minute changes: A job loss or change in hours near closing could impact your final approval.
Pro tip: Let your employer know in advance that the request is coming. Emphasize how important it is and ask them to respond quickly.
Bottom Line
While the WVOE might seem like a small step, it plays a big role in your mortgage approval. By staying in close contact with both your lender and employer, you can help keep your loan on track.
Call us at 888-616-9885—we're happy to help.
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