Your ability to repay a loan is based on income. Therefore, employment is a very important part of conventional loan qualification. CSI Mortgage offers in-house financing which requires a statement of income, but not a formal verification of it. For conventional loans however, employment must be verified and at least two paystubs will be required to demonstrate an annual income.

If good income cannot be verified through paystubs, two years Federal tax returns will be required. By providing tax returns, paystubs are not required for self-employed persons.

As far as term of employment is concerned, it is probably better if a person has not job-hopped every few months. As long as the jobs are in the same field and roughly the same position, lenders will not object. If the borrower has changed jobs and changed the line of work, the lender will scrutinize the history and probably require much more documentation to make sure this new line of work will work out for the borrower. From the lender's perspective, if a borrower's income stops, they are probably going to stop paying on their mortgage.

What is the ideal situation as far as employment is concerned? Keep the same job for two years. Why? The front page of the loan application makes a borrower report previous employment if the borrower has been employed at his/her job for less than two consecutive years.

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