What Is A Voe Loan

A "VOE loan" typically refers to a type of mortgage loan that requires verification of employment (VOE) as part of the underwriting process.

When applying for a mortgage loan, lenders typically require borrowers to provide various documents to verify their income, assets, and employment status. A Verification of Employment (VOE) is one such document that lenders may request to confirm a borrower's employment status and income.

Here's how the VOE process generally works:

1. Request for VOE: The lender requests a Verification of Employment from the borrower's employer. This may involve sending a form directly to the employer or using an automated system to verify employment information.

2. Employer Verification: The borrower's employer responds to the request by verifying the borrower's employment status, income, and other relevant details. This may include information such as the borrower's job title, length of employment, and salary or hourly wage.

3. Review by Lender: Once the lender receives the Verification of Employment, they review the information to ensure it aligns with the borrower's loan application and other documentation provided.

4. Underwriting Decision: The Verification of Employment is one of several factors that lenders consider when making an underwriting decision on a mortgage loan. If the VOE confirms the borrower's employment status and income, it can help strengthen their loan application.

5. Loan Approval and Closing: If the lender is satisfied with the Verification of Employment and other aspects of the borrower's application, they may approve the loan and proceed to the closing process. The borrower signs the necessary documents, and the loan funds are disbursed.

The VOE process helps lenders assess the borrower's ability to repay the mortgage loan by verifying their employment and income. It's an essential step in the underwriting process for mortgage loans and helps mitigate the risk of lending to borrowers who may not have stable employment or sufficient income to support the loan payments.