### Why do lenders verify employment when a borrower applies for a mortgage? - [x] To confirm income stability and employment history - [ ] To test the borrower's credit score - [ ] To evaluate the borrower's spending habits - [ ] To estimate the property value > **Explanation:** Lenders verify employment to confirm income stability and the employment history of the borrower. This process helps ensure the borrower has a reliable source of income to meet their mortgage obligations. Lenders typically look for at least two years of stable employment with the same employer or within the same industry. ### How long of an employment history do lenders typically require for a mortgage application? - [ ] Six months - [ ] One year - [x] Two years - [ ] Five years > **Explanation:** Lenders generally require at least two years of stable employment with the same employer or in the same industry. This is to ensure that the borrower has a consistent income source that makes them a reliable candidate for a mortgage. ### What information do lenders seek during the employment verification process for a mortgage? - [ ] Borrower's educational background - [x] Dates of employment, income received, and positions held - [ ] Previous property ownership - [ ] Borrower's medical history > **Explanation:** During the employment verification process, lenders require information such as the dates of employment, income received, and positions held. This helps in confirming the accuracy of the details provided by the borrower in their mortgage application. ### What is the typical purpose of the verbal verification of employment before closing the loan? - [ ] To persuade employers to increase the borrower's salary - [ ] To check the borrower's criminal record - [ ] To review the borrower's medical history - [x] To confirm that the borrower still works at their current employer > **Explanation:** Prior to closing the loan, lenders conduct a verbal verification of employment to confirm that the borrower still works at their current employer. This check ensures that the borrower remains qualified for the mortgage terms discussed based on current employment. ### What is NOT a part of the standard employment verification process for a mortgage? - [ ] Verifying dates of employment - [ ] Confirming income received by the borrower - [x] Reviewing the borrower's spending habits - [ ] Confirming the borrower's job position > **Explanation:** The standard employment verification process includes verifying dates of employment, confirming income received by the borrower, and confirming the borrower's job position. It does not involve reviewing the borrower's spending habits. ### What typically happens if a borrower cannot demonstrate two years of stable employment? - [ ] They may be immediately approved for the mortgage - [ ] The lender will automatically offer a higher loan amount - [ ] The lender will offer a lower interest rate on the loan - [x] Their mortgage application may be denied or further scrutinized > **Explanation:** If a borrower cannot demonstrate two years of stable employment, their mortgage application may be denied or undergo further scrutiny. Lenders look for consistent employment history to ensure that the borrower has a reliable income source to repay the mortgage. ### Besides verifying employment, what other information do lenders typically verify in a mortgage application? - [ ] Marital status and number of children - [x] Income and asset information - [ ] Political affiliations - [ ] Borrower's hobbies and interests > **Explanation:** In addition to verifying employment, lenders also verify income and asset information provided by the borrower. This comprehensive verification ensures that the borrower has the financial means to meet the mortgage repayment obligations. ### What is the lender's aim in requiring a verbal verification of employment before a mortgage closing? - [ ] To look for discrepancies in the borrower's work behavior - [x] To ensure the borrower is still employed at the given job - [ ] To gather feedback on the borrower's performance from the employer - [ ] To renegotiate the job position and salary terms > **Explanation:** The lender's aim in requiring a verbal verification of employment before the mortgage closing is to ensure that the borrower is still employed at the stated job. It is a final check to confirm the borrower's eligibility for the mortgage terms agreed upon. ### How do lenders typically conduct employment verification? - [ ] Through home visits - [x] By sending requests to employers - [ ] By contacting the borrower's neighbors - [ ] By checking the borrower's social media profiles > **Explanation:** Lenders typically conduct employment verification by sending requests to the employers listed by the borrower in their application. The verification process involves confirming the dates of employment, income received, and positions held by the borrower. ### What information is NOT verified by the lender from the borrower's employer? - [ ] Dates of employment - [ ] Income received - [x] Borrower's social security number - [ ] Positions held > **Explanation:** While the lender verifies dates of employment, income received, and positions held, they do not verify the borrower’s social security number with the employer as part of the employment verification process.