What is a letter of employment?
A letter of employment is a document from an employer that verifies an employee's employment status. It typically includes the employee’s name, position, salary and length of employment.
Mortgage lenders require letters of employment for a couple of key reasons:
- It helps them assess your creditworthiness: A steady income is a key factor in helping lenders evaluate the likelihood you will repay a loan.
- It helps lenders assess your financial stability: A long-term job with a steady income indicates whether you’re able to afford the monthly loan payments.
If you’re applying for a loan, get a letter of employment from your employer as soon as possible after your lender requests it. This will help ensure your loan application moves through the underwriting process and your pre-qualification or preapproval isn’t delayed.
Step-by-step process for requesting a letter of employment
In many cases, your lender will work directly with your employer to get a letter of employment. You won’t need to do anything except give your lender your employer’s contact information.
If your lender wants you to get the letter from your employer, you can typically work with your human resources department to obtain a letter confirming your employment.
Your employer should be able to provide you with a letter of employment within a few days. Here’s what the process looks like, step by step:
- Identify the right contact: Start with your human resources department. If your company is small, this may be your direct manager, office administrator or payroll provider. Ask who handles employment verification requests so your request doesn’t stall.
- Confirm what the lender needs: Mortgage lenders typically require your job title, employment status (full time or part time), length of employment and current income. Some also ask for year-to-date earnings or bonus history. Check your lender’s checklist before reaching out so nothing is missing.
- Gather your details in advance: Have your full legal name, employee ID (if applicable), start date and current compensation ready. Providing accurate information upfront reduces back-and-forth and speeds up turnaround.
- Draft a clear, professional request: Be specific about what the letter is for and when you need it. Mention that it’s for a mortgage application and note any lender deadline. Keep the tone polite and concise.
- Send the request and track timing: Email is usually best because it creates a paper trail. Many employers take one to five business days to respond, but larger companies may take longer during busy periods.
- Follow up if needed: If you haven’t heard back after a few business days, send a brief follow-up. Avoid waiting until your lender’s deadline is at risk.
- Review the letter carefully: Before submitting it to your lender, confirm all details are correct, including your salary, employment dates and company letterhead. Errors can trigger additional verification or delays.
When to request your letter of employment
Timing your employment letter correctly can help prevent last-minute delays during the mortgage process. Most lenders require the letter to be recent, typically dated within 30 to 60 days of when they review your application. Letters older than that may be rejected, even if your job situation hasn’t changed.
If your employer is slow to respond, the lender may accept a verbal verification of employment or a recent pay stub while waiting for the updated letter.
The best time to request your letter is after you’ve submitted a mortgage application and received a list of required documents from your lender. Asking too early can backfire if the letter expires before underwriting is complete, especially if the loan process stretches out longer than expected.
If your loan moves into underwriting or final approval weeks after your initial submission, be prepared to request an updated letter. This is common and doesn’t signal a problem with your application. Lenders often ask for refreshed documentation to confirm your employment is still active right before closing.
What to include in a letter of employment
Make sure your letter of employment includes the following information:
- Your name, job title and role
- Your employment status (full time, part time, contract, etc.)
- Permanence of employment (relevant for contract roles)
- The name and address of your employer
- Your start date and length of employment
- Your salary and other compensation (e.g., commissions, bonuses)
- Any other relevant information your lender requested
The letter should be on your employer's letterhead and signed by a company official, such as someone in the human resources department.
While it may be tempting to just write your own employment letter, it’s not ideal. Many lenders may not consider a letter you’ve written meaningful since there’s no third party to verify the information, explained Dennis Shirshikov, the head of growth at Awning, a company serving rental property owners.
Note that a letter of employment doesn’t guarantee you’ll be approved for a mortgage loan. However, it is required to help the lender assess your ability to repay the loan. If you have any questions, contact your lender.
Letter of employment example
Each letter of employment will look different, depending on your employer’s processes and systems and your mortgage lender’s requirements. For example, for conventional loans backed by Fannie Mae, your employer may need to complete a specific Request for Verification of Employment form. Your lender will let you know exactly what’s required.
If your lender doesn’t require a standard form, you can expect a letter of employment to look something like this:
[Your Company’s Name,
Address and Phone Number]
[Date]
[Name of Mortgage Lender
Name and Address of Mortgage Company]
Dear [Name of Mortgage Lender],
I am writing to provide you with a letter of employment on behalf of [Your Name]. [Your Name] has been employed by [Your Company’s Name] as a [Your Job Title] since [Date]. [Your Name’s] annual salary is $[Your Annual Salary].
Please let me know if you have any further questions.
Sincerely,
[Signature]
[Name, Title and Contact Information of Your Company’s Representative]
Employment letters for special circumstances
Some borrowers need more than a standard employment letter. Lenders often require extra detail for nontraditional situations to confirm income stability and job continuity.
Remote workers and relocations
If you work remotely or are relocating while keeping the same job, lenders want confirmation that your income will continue after closing. A remote or relocation employment letter should include:
- Job title and employment status (full time or part time)
- Start date and length of employment
- Current salary or hourly pay
- Statement that remote work is approved and ongoing
- Confirmation that relocation does not affect pay or job status
- Employer contact information on company letterhead
For relocations, lenders may also look for language confirming:
- The move is employer-approved
- Your role will remain the same after the move
Because remote work policies vary, ask your lender if specific wording is required before requesting the letter.
Self-employed applicants
If you’re self-employed and your lender asks you to provide a letter of employment, you should state in the letter that you are self-employed and provide the following information:
For self-employed borrowers, lenders may rely more heavily on tax documents and bank statements instead of a letter.
- Your name
- Your business name
- The date you started your business
- Your annual income
- A description of your business
- Any other relevant information
Once you’ve written the letter, sign and date it and submit it to your lender.
Lenders usually require supporting documents, such as:
- Recent personal and business tax returns
- Year-to-date profit and loss statement
- Business bank statements
- CPA or accountant verification, if requested
Alternatives and workarounds if a letter is unavailable
If you can’t obtain an employment letter, lenders may accept other forms of verification. Common alternatives include:
- Recent pay stubs
- W-2 forms
- Tax returns
- Verbal verification of employment completed by the lender
- Bank statements for self-employed applicants
If your employer is slow to respond or unwilling to provide a letter, notify your lender immediately. Early communication allows the lender to suggest acceptable alternatives and helps prevent closing delays.
» READ MORE: How to qualify for a mortgage
FAQ
Can I write my own letter of employment?
Typically, a letter of employment for a mortgage must come directly from your employer to be deemed valid and credible. Writing your own letter is generally unacceptable. This is because the letter helps your lender obtain third-party verification of your job status and income.
Can a lender call my employer for proof of employment?
Yes, in many cases, a lender can contact your employer to verify your income, employment and time on the job as part of the loan application process. However, it will typically obtain your consent before doing so.
Do you need a letter of employment for renting?
Whether you’ll need a letter of employment to rent a residence depends on the landlord or property management company’s requirements. Some may request a letter of employment to verify income and stability before approving a rental application. Others will not.
What are common challenges and solutions when obtaining a letter of employment?
The most common issues are slow employer response, missing details or outdated letters. To avoid problems, confirm exactly what your lender requires before requesting the letter, include a deadline in your request and review the letter for accuracy as soon as you receive it. If delays continue, ask your lender whether pay stubs or verbal employment verification can be used temporarily.
How do I submit my letter of employment to my mortgage lender?
Most lenders accept employment letters through a secure online portal, email or your loan officer. Upload or send the letter exactly as issued, including letterhead and signatures, and avoid making edits. If you’re unsure how to submit it, ask your loan officer for the preferred method to prevent delays.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Fannie Mae, “Request for Verification of Employment.” Accessed Jan. 6, 2026.
- PennyMac Loan Services, “Remote Work Letter for Mortgage.” Accessed Jan. 6, 2026.
- Freddie Mac, “Qualifying for a Mortgage When You’re Self-Employed.” Accessed Jan. 6, 2026.
