Verification of Employment Day of Funding 2026: Why It Matters and How to Handle a Job Change

Lenders verify employment twice during the mortgage process: once when the application is submitted and once on or near the day of funding. The second check is the day-of-funding VOE, sometimes called the DVOE. If the borrower's employment status has changed between application and funding, the lender must make underwriting decisions on the new information.

What the Day-of-Funding VOE Checks

• ✦The lender or its verification service contacts the employer to confirm the borrower is still employed, their title, and their base pay rate.
• ✦Most lenders use automated verification services like Work Number by Equifax or The Work Number through Fannie Mae's DU integration, which provide electronic employment verification without calling the employer directly.
• ✦The verification must confirm active employment status. A borrower who resigned, was laid off, or changed employers between application and closing will flag the check.

What Happens When Employment Changes

• ✦New job at the same employer in a different department or role: typically not an issue if pay and position classification are similar. Document with a letter from HR or the new offer letter.
• ✦Job change to a new employer in the same field: requires at least 30 days of employment at the new employer for most agency programs. The borrower must have received at least one paystub before funding.
• ✦Job change to a different field: treated as an employment gap requiring full re-underwriting of income. May require the file to be re-submitted to AUS.
• ✦Lay-off or termination: loan cannot fund. The transaction is suspended until the borrower has new verifiable employment.

Self-Employment Transition

• ✦If the borrower went from W-2 employment to self-employment between application and closing, this is a material change in income structure. Most lenders will not fund the loan. Self-employment income requires at least 2 years of history on tax returns.
• ✦This scenario should be disclosed by the borrower immediately. Concealing a job change is occupancy or income fraud.