Believe it or not, your employer could be a necessary party in the home-buying process, and even a helpful resource when it comes to benefits and cost saving opportunities. If a move is on the horizon for you, here’s where your employer could help.
1. Verification of Employment (VOE)
A verification of employment (VOE) is a critical step when you’re applying for a mortgage. Confirming your job and income are significant factors in determining your home loan eligibility. Connect your employer or HR department with your lender as soon as possible to ensure your VOE is on file, allowing your home buying process to move forward.
2. Cut Back on Closing Costs
When buying a new home, the closing process is a flurry of legal paperwork: deeds, bill of sale, affidavits, tax declarations and more. You’ll need a lawyer — a cost you may not have budgeted for. See if your company offers access to a pre-paid legal plan as a voluntary benefit option. It can help decrease the financial burden of hiring a lawyer.
3. Secure a Mortgage
Connect with your HR department or employer to see if your company has a relationship with a credit union. Many businesses have employer-sponsored credit unions to help their employees better manage finances and improve their credit ratings. Borrowing your mortgage from an employer-sponsored credit union versus the bank may be the ideal solution for those with lower credit ratings and individuals looking to save on fees.
4. Get Homeowners Insurance
Once you become a homeowner, you’ll want to protect your home and belongings with homeowners insurance and liability coverage. Homeowners insurance may be a benefit offering through your employer. Participation in these programs is usually voluntary, so ask your employer if you have access to a group homeowners insurance program. This option may give you a more competitive policy at a better premium.
While buying a home can be a very personal experience, consider opening a dialogue with your employer about how they support employees embarking on this journey. Open communication with your employer can help ensure a smooth home-buying process, and you may also uncover cost savings opportunities at your fingertips.