When you apply for a mortgage, auto loan, or lease, lenders and landlords rarely take your word alone about your job and income. Instead, they request a Verification of Employment (VOE), a formal confirmation from your employer that validates your employment history and income details.
A VOE serves as a factual check to confirm information like your job title, employment start date, salary, bonuses, and current employment status. It doesn’t assess your job performance; it strictly verifies objective data.
How VOE Is Conducted
There are three common methods to complete a VOE:
- Written VOE: Common in mortgage lending, the lender sends a standard form such as the Fannie Mae Form 1005 to your employer’s HR department. HR verifies and returns details including your employment dates, salary, and title.
- Verbal VOE: Typically a brief phone call made shortly before loan closing to confirm you remain employed.
- Automated VOE: Powered by services like The Work Number® by Equifax, this method allows lenders instant electronic access to your verified employment and income data using a special access code from you.
Why VOE Matters
VOE helps lenders comply with the Consumer Financial Protection Bureau’s Ability-to-Repay rule by verifying that borrowers have a steady income before approving loans. For landlords, VOE provides assurance that tenants can afford rent payments.
VOE for Self-Employed Individuals
Self-employed or gig workers don’t have an employer to verify employment with, so lenders rely on alternative documentation such as tax returns, 1099 forms, bank statements, profit and loss statements, or CPA letters to assess income stability.
Tips for a Smooth VOE Process
- Notify your HR department in advance about the VOE request.
- Ensure your job and income details are accurate on applications.
- Avoid changing jobs during loan approval processes to prevent complications.
- Ask if your employer uses automated VOE services to expedite verification.
For more details on employment verification and related financial topics, explore our Employment Verification and Self-Employed Income Verification resources.
FAQs
Can my employer refuse to complete a VOE? Most employers have a standard policy to respond to VOEs; refusal is uncommon but possible.
Will my employer know I’m job hunting from a VOE request? VOEs are initiated by lenders or landlords, not prospective employers, so there’s no risk.
How long does a VOE take? Automated VOEs are instant, verbal checks take minutes, and written responses may take up to a week.