Proof of employment is often required by banks before they can process a home loan application. Banks need to know that the applicant is capable of paying the loan back – an employment verification letter helps in this. It is important for banks to have this letter as part of an applicant’s loan application as it verifies that the applicant is actually working at the place where he states that he does and that he earns as much as he has declared.
An employment verification letter should begin by addressing the bank – preferably the contact person – and should continue to provide information of an employee’s employment dates and remuneration if specifically asked for. Employment verification letters are very direct and to the point – there is little need for niceties however, it is important to keep the tone formal. Depending on the individual situation, you might want to state that the letter is being written “on the specific request of the employee” if you do not want to take any responsibility upon yourself or the company.
When you finish writing an employment verification letter, you should sign it off by providing your full name, designation and contact information. This is how you can write an employment verification letter to assist an employee in obtaining a home loan:
Sample Employment Verification Letter for Home Loan
January 8, 2015
Mr. William Zanders
ABC Company
44 Warm Spring Road
Henderson, NV 62846
Dear Mr. Zanders:
I received a request for employment and income verification of Ms. Brittany Spears who is applying for a home loan from Company. Ms. Spears has been employed with Capital City Inc. for six years (from February 2008). Her official title at the company is Project Manager.
Ms. Spears is presently drawing an annual salary of $78,000 and is due for an evaluation and possible promotion in March 2015. She averages about 20-25 hours of overtime each week and is reimbursed on 22% higher than the said salary as overtime pay. She is in good standing with her coworkers and underlings and is in no threat of laying-off as Capital City Inc. has been consistently keeping above the waters even during times of recession.
Since Ms. Spears employment is not on a contract basis, she will be working with us until she decides to leave herself. A copy of her last salary slip is enclosed with this letter for your reference. Please feel free to call me at (333) 333-3333 if you need any further information.
Best regards,
Darwin Cooper
Project Director
Capital City Inc.
718 Greenvalley Parkway
Henderson, NV 72645
999.321.1111