{"id":23225,"date":"2023-12-19T08:00:00","date_gmt":"2023-12-19T13:00:00","guid":{"rendered":"https:\/\/www.zolo.ca\/blog\/?p=23225"},"modified":"2023-11-16T14:41:42","modified_gmt":"2023-11-16T19:41:42","slug":"letter-of-employment","status":"publish","type":"post","link":"https:\/\/www.zolo.ca\/blog\/letter-of-employment","title":{"rendered":"How To Request A Letter of Employment for a Mortgage + a Free Template"},"content":{"rendered":"\n\n\n

If you’ve been shopping around for a home, you’ve likely noticed plenty of paperwork involved. It can feel overwhelming when trying to obtain a mortgage, but fortunately, many resources are available online to help you through the home-buying process. <\/p>\n\n\n\n

One document you can’t ignore is a letter of employment when trying to obtain a mortgage. This article will examine the importance of your proof of employment letter and how you can ensure you get one to qualify for a mortgage. Not to mention, we have the perfect template for you to snag.<\/p>\n\n\n\n

What is a Letter of Employment?<\/h2>\n\n\n\n
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A letter of employment is one of the most important\u00a0mortgage documents<\/a>. This is\u00a0because the lender will want proof of your income and ability to make your mortgage payments. They need this before approving you for a significant loan. Since you\u2019re trying to borrow hundreds of thousands of dollars from the lender, they want to assess your ability to repay this amount thoroughly.\u00a0<\/p>\n\n\n\n

Your current employer writes a proof of employment letter to confirm that you work for the company. They also ensure that the compensation information you provided in your mortgage approval documents is accurate. Mortgage lenders<\/a> often request these employment letters to conduct due diligence before approving your mortgage loan application.\u00a0<\/p>\n\n\n\n

Why Do You Need a Letter of Employment to Secure a Mortgage?<\/h2>\n\n\n\n

When a lender reviews your finances to determine how much mortgage you can afford and if you qualify, they will collect information about your earnings and employment history. For example, a lender will be concerned about your ability to pay your mortgage on time if you just started a new job where your employment isn\u2019t entirely stable. Or, perhaps you could be buying during a period of intense rate hikes. Lenders may even look at the industry that you work in to determine if this field is stable or if your income history with the company has been consistent. <\/p>\n\n\n\n

The letter of employment is needed to secure the mortgage because most lenders generally prefer an applicant with a stable and predictable income. As a result, they will likely ask you for proof of your income to fully assess your financial situation. While you could provide a pay stub in some cases, you will more likely be asked for a letter of employment, so you may have to be proactive about obtaining one at your company.\u00a0<\/p>\n\n\n\n

How Do You Get a Letter of Employment?<\/h2>\n\n\n\n

The best way to get a letter of employment is to contact your human resources department first to see if the organization has an official policy. While you could try contacting your direct supervisor, you should review the company guidelines since many employers will have all letters go through human resources (HR). <\/p>\n\n\n\n

Your HR department will likely have a proof of employment template letter for staff. The good news is that we have a free sample template to request a letter of employment, so you don\u2019t have to stress about what you need.<\/p>\n\n\n\n

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Fillable Template<\/a><\/div>\n\n\n\n
Printable Template<\/a><\/div>\n<\/div>\n\n\n\n

What Should You Include in Your Letter? <\/h2>\n\n\n\n

Before formally requesting your letter of employment for a mortgage, you must ensure you’re asking for all the requirements. Your letter of employment should include the following information:\u00a0<\/p>\n\n\n\n