Simplifying the Mortgage Lending Process with The Work Number®

THE MONTH OF JUNE MARKS NATIONAL HOMEOWNERSHIP MONTH, a time to celebrate the value that owning a home brings to individuals, families, and neighborhoods across the United States. Purchasing a home is often heralded as a prime example of the American Dream, representing a significant opportunity to build generational wealth. 

However, navigating the mortgage lending process can be daunting. To obtain a loan, you will be asked to provide various documents that may include proof of employment and income, proof of residence, bank statements, statements documenting alternative income sources or existing debt, and more. Often, these documents must be supplied to the lender at multiple points during the process. And if they are handled manually, that can create delays and headaches for everyone involved. 

That’s where databases such as The Work Number® come in to help speed up the loan process, by delivering instant and always-on digital employment and income verifications to lenders with a permissible purpose. The Work Number can reduce your workload as a borrower because you may not have to gather all the paperwork needed to provide proof of employment and income. 

Why does a mortgage lender need to verify my employment or income? 

When lending money, the lender is assuming the risk that you as the borrower will be able to pay back the loan. Mortgage lenders have good reason to be cautious, since home loan amounts are generally much higher than other loan types (such as auto or personal loans). Therefore, mortgage lenders will typically check to confirm that you are currently employed and have been employed over a period of time. This helps the lender understand how much money you make and project your ability to repay the loan. 

“Most lenders typically review two years' worth of employment and income history for a mortgage application,” said Ashley Wood, Vice President, Mortgage Verification Services at Equifax Workforce Solutions. “However, in certain situations, lenders may require additional information. For example, if the borrower has experienced employment disruptions or has gaps in employment history or the borrower has complex income or a fluctuating income history.”

How does the verification process work when my lender uses The Work Number? 

When you submit your mortgage application, the lender can then request an instant verification through The Work Number, which provides a report showing the requested information. It may include details such as your employment status, salary and other information to help the lender determine your ability to qualify for the loan. 

“If your employer is among the 2.7 million that trust The Work Number to provide verifications for their employees, your lender will be able to receive an instant verification of your information without having to rely on your HR department to return a phone call or email,” added Wood. “This can help you get approved for a mortgage more quickly and efficiently.” 

As a prospective homeowner, how does it benefit me if my mortgage lender uses The Work Number? 

If you’re hoping to make the dream of homeownership a reality, The Work Number can help speed up the mortgage process. Using The Work Number means that your lender has the ability to instantly verify your income and employment information when it’s needed - even on evenings or weekends - and without you needing to bring in paper documents. 

Importantly, data in The Work Number is only provided to organizations (such as mortgage lenders) that are credentialed by Equifax and have a permissible purpose to access your data under a federal law called the Fair Credit Reporting Act (FCRA). These organizations must start with your engagement before they can verify your income and employment information. 

Additionally, with an enhanced consumer portal for The Work Number, you have a more simple way to understand what information is shared with a lender and the ability to better confirm its accuracy. In fact, you can view and manage your employment data any time, 24/7, on The Work Number website. 

How can The Work Number help unlock the dream of home ownership for more people?

When a mortgage lender uses employment and income information in addition to traditional credit scoring methods, it can gain a more comprehensive representation of your ability to pay. This means that verified income and employment data from The Work Number has the potential to responsibly expand access to credit and unlock opportunities for a much wider range of people.

To learn more about The Work Number, and to view or manage your employment data, click here.