Employment verification involves collecting information about your employment status. This process typically occurs in three circumstances. First, a prospective employer may verify your current or previous employment before extending a job offer.
Second, landlords use employment verification to ensure you have a steady source of income, which makes it more likely you’ll pay your rent on time. Third, lenders perform verification of employment and verification of income before approving mortgages and other types of loans.
The timeline for verification depends on several factors, such as which verification method you use. Learn more about employment verification and how it can help you reach your financial goals.
What Is Employment Verification?
Verification of employment involves contacting current and previous employers to confirm the information you’ve provided on a loan, rental or job application. Its main purpose is to verify you have steady employment, a key factor in getting approved for rental units and loans.
The requesting party typically wants to verify the following:
- Job titles
- Start dates
- End dates
- Salary/wages
Factors That Affect the Time Frame
The exact timeline for employee verifications depends on several factors. If you’re using manual verification, it may take several days — or even weeks — for your employer to respond to a verification request.
Some employers use third-party employment verification companies to handle verification requests. If your employer is one of them, the time frame for verification depends on how long it takes the third-party company to respond.
Consumer-permissioned verification allows for near-instant verification of your employment data, so it’s the fastest verification method available. For example, Truv employment verification provides access to requested data once you log in — which takes an average of 30 seconds.
The timeline for verification depends on the method used. If you opt for manual verification, you’ll need to provide pay stubs, W-2 forms and other documents to help verify your employment status.
Self-employed individuals face additional manual verification steps since they don’t have access to traditional documents like pay stubs. For example, you may need to create monthly profit-and-loss statements, prepare pay stubs or provide access to your bank account to help verify you receive regular deposits.
Additionally, if manual verification is required for multiple employers, the timeline increases. If you need a home loan, for example, your lender may require 2 years’ worth of employment data. It takes less time to manually verify data from one employer than it does to contact three or four.
Typical Timelines for Employment Verification
Consumer-permissioned data is returned to the requester in real time, so it typically takes less than a minute to gather necessary information. Instant databases also return data within a minute or 2.
If your lender or landlord uses manual verification, it may take up to 14 days to get verified. For example, if your employer receives an employment verification letter, it may take several days to pull your file, gather the requested information and prepare a response.
Challenges in the Verification Process
One challenge in verification of employment is that some employers don’t respond to verification requests right away. Your lender or prospective landlord may have to request the same information two or three times, causing frustrating delays.
Inaccurate Information
Some forms of verification are also less accurate than others. For example, many companies rely on instant databases to verify employment data. Databases use information from records from employers and payroll providers to confirm employment status.
These sources aren’t always accurate, especially if they rely on manual data entry. For example, if you left your job in 2023, it’s possible that your previous employer entered an employment end date of 2022. Once the requester becomes aware of this discrepancy, they have to take additional verification steps, increasing the time it takes to get approved.
High Verification Costs
Instant databases are also expensive, especially when used to verify employment for a mortgage application. For example, if your lender uses instant databases to verify income and employment, it may cost up to $123 per borrower.
Lenders typically perform a second verification 10 days before closing to ensure nothing has changed, adding another $123 per borrower to your costs. If you have a co-borrower, you may have to pay nearly $500 to get verified. Depending on the lender, these costs may be passed on to you as the borrower. It’s important to review each line item to ensure you’re aware of the costs associated with your home loan
Consumer-permissioned data is up to 80% less expensive than the traditional database method. Note that verification costs depend on the lender you choose.
Privacy and Security Concerns
Privacy and security concerns may also extend the verification timeline. For example, your employer may require you to complete a consent form before responding to a verification request.
You can avoid this delay by using the consumer-permissioned approach instead of relying on manual verification. Truv allows you to connect directly to payroll providers, making the entire process more secure.
Why Fast and Accurate Employment Verification Matters
Fast, accurate employment verification reduces the risk of missing out on a valuable opportunity. For example, if there’s a delay in the verification process, you may not be able to close on a home loan before interest rates increase. Fast verification can also help you avoid missing out on the perfect apartment or job of your dreams. Truv uses the most advanced technology available to enhance accuracy and eliminate delays in the verification process. For example, our document upload solution lets you upload pay stubs, bank statements and other documents in several seconds.
FAQs
How long does it take to verify employment?
It can take a few seconds to a few weeks to verify employment. The exact timeline depends on the verification process used.
How long does it typically take to complete the verification process for a new employee?
Generally, employment verification takes no more than 72 hours. However, it may take longer if you have to wait for an employer to respond to the request or if an instant database returns inaccurate data.
