If you’re applying for a mortgage, a lender will often ask for an employment letter to verify your income and employment. This letter must be prepared by your employer and should include important details about your job, such as your salary, tenure, and job title. Here are seven examples of employment letter samples for mortgages that you can use as a guide when preparing your own.
Example 1: Employment Confirmation Letter
Dear Sir/Madam,
I am writing to confirm that [Employee Name] is currently employed at [Company Name] as a [Job Title]. [He/She] has been working with us since [Joining Date] and earns a salary of [Salary].
We are pleased to confirm [Employee Name]’s employment and wish [him/her] all the best in [his/her] future endeavours.
Sincerely,
[Employer’s Name]
Example 2: Salary Verification Letter
Dear [Lender’s Name],
I am writing to confirm that [Employee Name] is currently employed at [Company Name] as a [Job Title]. [He/She] has been working with us since [Joining Date] and earns a salary of [Salary], which is paid bi-weekly/monthly.
Please let me know if you require any additional information.
Sincerely,
[Employer’s Name]
Example 3: Letter for Self-Employed Individuals
Dear Sir/Madam,
I am writing to confirm that [Borrower’s Name] is self-employed and has been running [his/her] own business, [Business Name], since [Start Date]. Based on [his/her] tax returns for the past two years, [he/she] has an average net income of [Net Income].
Please do not hesitate to contact me if you require any additional information.
Sincerely,
[Employer’s Name]
Example 4: Letter for Contract Employees
To Whom It May Concern,
This letter is to confirm that [Employee Name] is employed at [Company Name] as a [Job Title] under a contract that began on [Start Date] and will terminate on [End Date]. [He/She] earns a salary of [Salary] and works [Number of Hours] hours per week.
Please contact me if you have any questions or require additional information.
Sincerely,
[Employer’s Name]
Example 5: Letter for Part-Time Employees
Dear [Lender’s Name],
I am writing to confirm that [Employee Name] is currently employed at [Company Name] as a part-time [Job Title]. [He/She] works [Number of Hours] hours per week and earns a salary of [Salary].
Please let me know if you require any additional information.
Sincerely,
[Employer’s Name]
Example 6: Letter for Commission-Based Employees
To Whom It May Concern,
This letter is to confirm that [Employee Name] is employed at [Company Name] as a [Job Title]. [He/She] is paid on a commission basis and earns an average of [Commission Amount] per month. [He/She] has been employed with us since [Joining Date].
Please let me know if you require any additional information.
Sincerely,
[Employer’s Name]
Example 7: Letter for Recently Hired Employees
Dear Sir/Madam,
I am writing to confirm that [Employee Name] has been hired as a [Job Title] at [Company Name] effective [Joining Date]. [His/Her] salary is [Salary] per annum.
Please let me know if you require any additional information.
Sincerely,
[Employer’s Name]
Tips for Writing an Employment Letter for Mortgage
When preparing an employment letter for a mortgage, keep the following tips in mind:
- Ensure that the letter is printed on company letterhead and signed by an authorized representative of the company.
- Include the employee’s full name, job title, and length of employment.
- Specify the employee’s salary and method of payment (e.g. bi-weekly, monthly).
- If the employee is self-employed, provide details about the business, such as its name, start date, and net income.
- If the employee is a contract worker, include the start and end dates of the contract and the number of hours worked per week.
- If the employee works part-time, specify the number of hours worked per week.
- If the employee is paid on a commission basis, provide details about their average monthly earnings.
- Always be truthful and accurate in the information provided.
Frequently Asked Questions
Can I write my own employment letter for a mortgage?
No, the employment letter must be prepared by your employer.
What should an employment letter for a mortgage include?
The letter should include your full name, job title, length of employment, salary, and method of payment. If you are self-employed or a contract worker, additional information will be required.
Why is an employment letter required for a mortgage?
Lenders require an employment letter as part of the mortgage application process to verify your income and employment status.
Can I use an old employment letter for a new mortgage application?
No, the employment letter must be current and not more than 30 days old.
What should I do if my employer refuses to provide an employment letter?
You should speak with your lender to discuss alternative forms of income verification.
Can I edit the employment letter provided by my employer?
You should not edit the letter unless there is an error or omission that needs to be corrected.
Conclusion
An employment letter is an important document that lenders require as part of the mortgage application process. By providing all the necessary information in an accurate and truthful manner, you can help ensure a smooth and successful application process.