If you are considering applying for a mortgage, you should be aware that a lender’s verification of your ability to repay will include a review of documentation showing your income and employment. The purpose of this verification is to evaluate your financial situation and determine if you are a good candidate for a mortgage.
First, the stability of your employment, its duration and the likelihood that you will continue in it are analyzed. Other income you may have, such as bonuses, commissions or incentives, among others, are also evaluated. It is worth noting that the amount of time you have been in your current job is an important consideration. If you have been in the same job for more than two years, this demonstrates stability and solidity in your work history. In case you have recently changed jobs, you must demonstrate that your skills, profession, or abilities align with the new position.
If you are self-employed, it is essential that you have the corresponding financial statements and evidence to demonstrate your employment and income. If you own a business corporation, you must be certified by a certified public accountant to validate your financial and employment history.
It is also important to note that there are differences between regular employment and contract employment. In the case of the last mentioned, it is necessary to evaluate not only the amount received, but also the duration and the probability of renewal. In addition, if you have other sources of income, such as salaries, commissions, dividends, incentives or rents, you must provide evidence of each of them.
In conclusion, employment and income verification is an essential part of the mortgage application process. It’s crucial to be able to demonstrate that you have a stable job and secure income to afford the mortgage debt. Therefore, it’s important to consider the determining factors that are evaluated in this verification, in order to increase your chances of obtaining a mortgage.
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