When evaluating a potential borrower, lenders consider a number of
factors. You already expect to produce a good FICO score, proof of
income, and a reasonable down-payment, but have you reviewed your
resume? A crucial aspect of loan approval is your employment and
employment history – your resume.
Your employment history provides lenders some insight into your financial
stability and income consistency. They want to ensure that you have a
steady source of income that will cover your mortgage as well as
household essentials. Typically, this involves pay stubs, W-2 forms, and tax
returns. They will also verify employment with your human resource
department, including hire date. If you have been in the same job for a
while, this strengthens your application by reducing the risk the lender
assumes in loaning you the money. Sometimes, the lender will need to look
closer and ask for more documentation if your employment history reveals
The approval process for self-employed borrowers may be slightly different.
Lenders will expect a strong, steady income stream that will be ve
bank statements and tax returns. A company profit and loss statement will
also be requested.
Extended, unexplained employment gaps may be a concern for lenders.
The key is to explain, and most lenders understand reasonable
explanations such as education, caring for a family member, or
Recent changes to your career track or industry can be a red flag to
lenders. Remember they are looking for consistency. However, as with
other issues, having a strong reason for the change and demonstrating
financial stability can alleviate these concerns.
Before you send off your loan package, it’s worth giving your resume a
quick review. Proactively offer documentation for anything that seems
unusual or that may cause questions. Working with your mortgage
professional can help you navigate the process and result in a loan